2005 News Releases
Investors:
(212) 521-4835
Media:
Kekst and Company
Wendi Kopsick (212) 521-4867
Caroline Gentile (212) 521-4883
Michael Freitag (212) 521-4896
Website: www.winn-dixie.com
WINN-DIXIE REQUESTS THAT BANKRUPTCY COURT TRANSFER CHAPTER 11 CASE TO JACKSONVILLE, FLORIDA
JACKSONVILLE, FL, MARCH 30, 2005 - Winn-Dixie Stores, Inc. ("WNDXQ") announced today that it has requested that the U.S. Bankruptcy Court transfer its Chapter 11 case from the Southern District of New York to the Jacksonville Division of the Middle District of Florida.
Winn-Dixie President and Chief Executive Officer Peter Lynch said, "We have always been comfortable having our Chapter 11 case heard in our hometown of Jacksonville. When we initially made the decision to file in New York, it was with the understanding that creditors preferred that location because of its convenience. In fact, our research showed that most of our major creditors either have offices or legal representation in New York. Now that an objection from a creditor has caused this matter to become an unnecessary distraction, we have asked the court in New York to agree to move the case to Jacksonville as soon as possible."
On March 14, 2005, a Winn-Dixie trade creditor, Buffalo Rock Company, filed a motion seeking to transfer venue. In its response to this motion, filed with the Court today, Winn-Dixie said it disputes Buffalo Rock's assertions. Nonetheless, Winn-Dixie has concluded that the issue has become a distraction and that protracted litigation over venue would only further distract the Company and its creditors from the fundamental issues to be resolved in Winn-Dixie's Chapter 11 cases, all of which relate to the successful reorganization of the company and its emergence from Chapter 11 as a profitable, viable business.
A court hearing on Winn-Dixie's request to change venue has been scheduled for April 12, 2005. Judge Robert D. Drain of the Southern District of New York currently presides over the Winn-Dixie case. If Judge Drain agrees to a change in venue, procedures would be implemented that would allow for an orderly transition of the case to the Jacksonville Court. Winn-Dixie does not expect that such a transition would significantly delay or otherwise materially affect its reorganization proceedings.
As previously reported, on February 21, 2005, Winn-Dixie Stores, Inc. and 23 of its U.S. subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. All Winn-Dixie stores in the U.S. and the Bahamas are open and conducting business as usual.
About Winn-Dixie
Winn-Dixie Stores, Inc., is one of the nation's largest food retailers. Founded in 1925, the Company is headquartered in Jacksonville, FL. For more information, please visit
http://www.winn-dixie.com.
More information about Winn-Dixie's reorganization case is available on the Company's Web site at http://www.winn-dixie.com or as follows: Customers: 1-866-WINN-DIXIE (1-866-946-6349), Media: Kekst and Company -- Wendi Kopsick, (212) 521-4867, Caroline Gentile, (212) 521-4883, or Michael Freitag, (212) 521-4896. Investors: (212) 521-4835.
Forward-Looking Statements
Certain statements made in this press release may constitute "forward-looking statements" within the meaning of the federal securities laws. These forward-looking statements involve
certain risks and uncertainties. Actual results may differ materially from the expected results described in the forward-looking statements. These forward-looking statements include and may be
indicated by words or phrases such as "anticipate," "estimate," "plans," "expects," "projects," "should," "will,"
"believes," or "intends" and similar words and phrases. There are a number of factors that could cause the Company's actual results to differ materially from the expected results
described in the Company's forward-looking statements.
There can be no assurance that the Company's restructuring will be successful. Risk factors related to its restructuring efforts that could cause actual results to differ from these forward-looking statements include, but are not limited to, the following: the Company's ability to continue as a going concern; court approval of the Company's motions filed with the bankruptcy court from time to time; the ability of the Company to operate under the terms of the Company's DIP facility; the ability of the Company to develop, confirm and consummate plans of reorganization; risks associated with third parties seeking and obtaining court approval to terminate or shorten plans of reorganization, for the appointment of a Chapter 11 trustee or to convert the cases to Chapter 7 cases; the potential adverse impact of the Chapter 11 cases on the Company's liquidity and results of operations; the ability of the Company to obtain and maintain trade credit and shipments and terms with vendors and service providers for current and future orders and to maintain in-stock positions for all of its product offerings; the Company's ability to maintain contracts that are critical to its operations; the ability of the Company to attract and retain customers; the ability of the Company to attract, motivate and retain key executives and associates; and potential adverse publicity.
In addition, the Company faces a number of risks with respect to its continuing business operations, including but not limited to: the Company's ability to execute its strategic initiatives, including asset rationalization, store upgrades, expense reduction, brand positioning and customer service, and to fund its store upgrades and brand positioning initiatives; the Company's ability to increase sales and market share through the brand-related initiatives being tested in the Company's lead markets; the Company's ability to increase capital spending levels in the future to invest in its store base and other capital projects; the Company's ability to manage its inventory efficiently; and the Company's response to the entry of new competitors in its markets, including traditional grocery store openings and the entry of non-traditional grocery retailers such as mass merchandisers, supercenters, warehouse club stores, dollar-discount stores, drug stores and conventional department stores.
Please refer to discussions of these and other factors in this news release, in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2004, the Quarterly Report on Form 10-Q for the quarter ended January 12, 2005, and other Company filings with the Securities and Exchange Commission. These statements are based on current expectations and speak only as of the date of such statements. The Company undertakes no obligation to publicly revise or update these forward-looking statements, whether as a result of new information, future events or otherwise.
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News Release #5020