Wednesday, February 23, 2005

Winn-Dixie 59 Cent Sale

LaBelle, Fl. -- The day after Winn Dixie Stores' bankruptcy filing, stock
traders sold down the stock to 59 cents in morning trading, losing 60
percent from the closing price the day before. Six years ago the stock was
selling for $40 a share. Analysts look for not much hope that one of the
nation's largest grocery chains will be able to pull out of their situation.
If any pullout is forthcoming, it will be a situation where only the most
profitable stores will remain open.

Winn-Dixie faces stiff competition from Wal Mart and Publix. Because these
two chains are not within 25 miles of LaBelle, perhaps the local store will
survive. No word yet on which stores will be closed statewide and when,
although a warehouse has been closed in the Sarasota area and it's food
manufacturing plants will be the first to go. The first step is apparently
for Winn-Dixie to try to renegotiate exisiting leases with their landlords.

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