2005 News Releases
Investors:
(212) 521-4835
Media:
Kekst and Company
Wendi Kopsick (212) 521-4867
Michael Freitag (212) 521-4896
Website: www.winn-dixie.com
COURT AGREES TO TRANSFER
WINN-DIXIE
CHAPTER 11 CASE TO JACKSONVILLE, FLORIDA
JACKSONVILLE, FL, APRIL 12, 2005 - Winn-Dixie Stores, Inc. ("WNDXQ") announced today that the U.S. Bankruptcy Court has agreed to transfer the Company's Chapter 11 case from the Southern District of New York to the Jacksonville Division of the Middle District of Florida.
In a ruling issued today, Judge Robert D. Drain of the Southern District of New York ordered that the Winn-Dixie proceedings be moved to Jacksonville following an orderly transition. Winn-Dixie does not expect that this transition will significantly delay or otherwise materially affect its reorganization proceedings.
The Court's ruling followed a hearing today at which a number of creditors argued in favor of moving the case to Jacksonville, while a number of others - including the official committee of unsecured creditors - argued in favor of having the case remain in New York. Winn-Dixie had requested that the Court transfer its case to Jacksonville after determining that this matter was threatening to disrupt the Company's Chapter 11 proceedings.
In his ruling, Judge Drain noted that the record of the court hearing demonstrated that Winn-Dixie's initial decision to file its case in New York was made "entirely in good faith" and, contrary to reports suggesting otherwise, was "not an attempt to hide anything" from creditors or other parties nor an attempt to obtain favorable treatment from the Court.
Jay Skelton, Chairman of the Winn-Dixie Board of Directors, said, "We are pleased that the Court has agreed to transfer Winn-Dixie's Chapter 11 case to our hometown of Jacksonville and, by doing so, has resolved a matter that was becoming an unnecessary distraction for the Company and its creditors. Today's Court ruling confirms our strong belief that we have acted appropriately, legally and in good faith throughout this matter. Now that this issue has been decided, we are confident all parties involved in Winn-Dixie's Chapter 11 proceedings will move forward in a spirit of cooperation and a renewed focus on achieving a successful reorganization."
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.
A judge and case number have not yet been assigned to the Winn-Dixie case by the Bankruptcy Court in Jacksonville. Winn-Dixie will post this information on its Web site, www.winn-dixie.com, once it is available. Court filings and other creditor information will continue to be available on the following web site: www.loganandco.com
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, 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 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 #5022