Food Lion seeks to buy Bi-Lo stores for $425 million

Food Lion seeks to buy Bi-Lo stores Delhaize Group, the parent of the Food Lion grocery chain, has signed a letter of intent to buy most of the assets of Mauldin-based Bi-Lo for $425 million. The purchase must be approved by a bankruptcy judge.

Staff Report
Published Oct. 5, 2009

The parent company of Food Lion has signed a letter of intent to buy most of Mauldin-based Bi-Lo’s assets for $425 million.

The proposed purchase, which requires approval by a bankruptcy judge, includes most of Bi-Lo’s 214 stores, according to the agreement filed with the bankruptcy court of South Carolina.

The purchaser would be Delhaize Group, a Belgian food retailer with stores in six countries on three continents.

This is just one restructuring proposal that will be considered by the court, said Bi-Lo President and CEO Michael Byars.

“Consistent with its fiduciary duty, Bi-Lo remains focused on maximizing the value of the estate for the benefit of all Bi-Lo stakeholders,” Byars said in a statement released this morning. “All options for Bi-Lo remain under food lion logo consideration, and we believe it is important to carefully review our options and determine the most appropriate course of action in the context of the Chapter 11 process. The company intends to work constructively with all parties in order to effectuate a successful restructuring.”

Bi-Lo filed for bankruptcy protection in March under a heavy debt load. The company has stores in South Carolina, North Carolina, Tennessee and Georgia and employs some 15,500 people. Bi-Lo sales are estimated at $2 billion last year.

If the purchase is approved, Delhaize intends to integrate Bi-Lo into the North Carolina-headquartered Food Lion chain. Food Lion has more than 1,300 stores in 11 states and has more than 74,000 employees. According to the letter of intent, Food Lion would likely retain many of Bi-Lo’s retail employees but would not offer employment to Bi-Lo’s corporate associates.

“We at Food Lion LLC have great admiration for the associates and stores at Bi-Lo,” said Rick Anicetti, executive vice president of Delhaize Group and president and CEO of Food Lion, in a statement released today. “We believe our markets and service philosophy are complementary and we look forward to continuing our discussions with Bi-Lo.”

Delhaize Group and Food Lion did not disclose the list of Bi-Lo stores that would be included in the sale.