Winn-Dixie Sells Bahamas Unit

JACKSONVILLE, FL-Bankrupt grocer Winn-Dixie is selling 12 stores in the Bahamas to a local group called BK Foods for $50 million. Three of the stores are under the Winn-Dixie banner and nine are in a chain called City Markets.

“We have concluded that a sale of our Bahamian operation is in the company’s best interest as we continue to sharpen our focus on successfully implementing our business plan and preparing to emerge from Chapter 11,” said Peter Lynch, Winn-Dixie’s president and chief executive officer, in a statement. Though the stores are profitable, he said they are not part of the company’s core business. The proceeds from the transaction will help the retailer upgrade its US portfolio.

Winn-Dixie owns the stores through a subsidiary called W-D (Bahamas). Public shareholders in the Bahamas, who control 22% of the entity, will continue to hold their stake in the units. Winn-Dixie now needs bankruptcy court approval to close the deal.