Bi-Lo, a chain of 215 supermarkets in in South Carolina, North Carolina, Georgia and Tennessee, has filed for bankruptcy protection. Bloomberg says the company's stores will remain open to customers.
BI-LO stores will remain open and continue to operate without interruption, the Mauldin, South Carolina-based company said in a statement today.
The company listed assets and debt of as much as $1 billion in Chapter 11 documents filed voluntarily today in U.S. Bankruptcy Court in Spartanburg, South Carolina.
Standard & Poor’s lowered its rating on BI-LO's debt to CCC last month, citing a "near-term financing risk," high debt leverage and historically weak operating performance in a competitive industry. BI-LO has a $260 million term loan maturing March 26, according to court documents. General Electric Capital Corp. will provide debtor-in-possession financing.
The Chattanooga Times Free Presssays Bi-Lo does not plan store closings or layoffs. They filed bankruptcy because they were facing a deadline on a $260 million loan. Retailer Daily, Reuters and CoStar have more on Bi-Lo's bankruptcy filing.
