Winn-Dixie plans to close Texas, Oklahoma stores, eliminate 5,300 jobs

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Posted 1:28PM on Monday, May 6, 2002

JACKSONVILLE, Fla. - Winn-Dixie Stores Inc. said Monday the company will close all 76 of its stores in Texas and Oklahoma, laying off 5,300 workers. Winn-Dixie operates 71 stores in Texas and five in Oklahoma. It also has a distribution center and dairy plant in Fort Worth, and will close those as well, the company said. "The exiting of our Texas and Oklahoma operations will allow us to focus our management talent and capital in our core markets where we get a higher return for our shareholders," said Al Rowland, president and chief executive officer. Winn-Dixie is one of the nation's largest retail food chains, operating about 1,150 stores in the Sunbelt with about 120,000 workers. The company is negotiating to sell the dairy plant and the majority of the stores to various buyers, said Winn-Dixie spokesman Mickey Clerc. If buyers cannot be found, the stores and the distribution center will be shuttered, he said. "We are negotiating for a buyer on most of those stores," Clerc said. "We are working hard to see that it happens." The transactions should be completed by the end of the company's fiscal year on June 26. Continued losses and a reduction of market share forced the decision, the company said. Severance packages will be offered to most employees who remain with Winn-Dixie through their store closings, Clerc said. The closings will result in a one-time charge of approximately $75 million after taxes, or 53 cents per share, the company said. It estimated that about $90 million will be coming in from the sale of the properties and the liquidation of inventories. The closings are anticipated to decrease future annual sales by approximately $630 million per year, but improve annual net earnings by approximately $31 million, or 22 cents per share. In midday trading on the New York Stock Exchange, Winn-Dixie shares were up 97 cents at $18.09. ------ On the Net: http://www.winn-dixie.com