Winn-Dixie
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Winn-Dixie OTCBB: [WNDXQ] is a supermarket chain based in Jacksonville, Florida. After a 2005 restructuring, it will have 587 stores throughout Florida, in four other Deep South states, and in the Bahamas; the restructuring left the chain with fewer stores than it had in the late 1960s. The company has existed under its present name since 1955 and can date its roots back to 1925.
Prior to filing for Chapter 11 bankruptcy, Winn-Dixie was listed in the S&P 500 and had been traded on the New York Stock Exchange under the ticker symbol "WIN" since February 18, 1952. The company is currently traded under the symbol "WNDXQ" on the Pink Sheets Electronic Quotation Service.
They are known for their private label Chek brand soft drinks, which are produced in over 20 different flavors plus diet and caffeine-free varieties — one of the widest assortments anywhere. The company also sells snacks under the private-label brand Crackin' Good Snacks. They are known as "The Beef People", though this slogan has seen decreased usage recently. Likely because of their negative brand image, Winn Dixie has begun using the slogan "getting better all the time" in its advertising and print media.
History
Winn-Dixie was founded and built-up by William Milton Davis and his sons Artemus Darius Davis, James Elsworth Davis, Milton Austin Davis and Tine Wayne Davis. William Davis started in business in Burley, Idaho where he bought a general store in 1914 that he later renamed Davis Mercantile. As was common at the time, he sold most goods on credit. The advent of cash-only grocery stores in the 1920s hurt Davis's business, as the new stores offered lower prices and larger selections.[Most Important Floridians of the 20th Century - Davis Brothers] - URL retrieved June 26 2006In 1925 William Davis borrowed $10,000 from his father and moved to Miami, Florida, where he purchased the Rockmoor Grocery. In 1927 the company was renamed Table Supply, and four more stores were opened. In 1931 the Davis family bought the Lively Stores chain for $10,000, to create a chain of 33 Table Supply stores across Florida from Miami to Tampa. William Milton Davis died in 1934, leaving his four sons in charge of the company.[Winn-Dixie: A Brief History] - URL retrieved June 26 2006
In 1939 the Davis brothers bought 51 per cent of Winn-Lovett, a chain of 73 stores. In 1944 the brothers adopted Winn-Lovett as the company name and moved the company headquarters to Jacksonville. Winn-Lovett purchased the Steiden Stores chain of 31 stores in Kentucky in 1945, and Margaret Ann Stores, with 46 stores in Florida, in 1949. In 1952 Winn-Lovett became the first industrial corporation based in Florida to be listed on the New York Stock Exchange.
Winn-Lovett continued to grow by acquiring other chains, including Penney Stores in Mississippi, as well as Ballentine Stores and Eden Stores, both in South Carolina, all in 1955. Also in 1955, Winn-Lovett bought the 117-store Dixie Home chain, and changed its name to Winn-Dixie. In 1956 Winn-Dixie bought Ketner-Milner Stores in North Carolina, Hill Stores in Louisiana and Mississippi and King Stores in Georgia. The last purchase of a chain was in 1967, when Winn-Dixie bought the City Markets chain in The Bahamas.
Although Winn-Dixie Stores has been a publicly-owned corporation since 1952, the Davis family has always maintained control of the corporation. As of February, 2005 (when the company entered bankruptcy) the heirs of William Milton Davis still held about 35 per cent of Winn-Dixie stock.[Hoover's report on Winn-Dixie Stores, Inc.] - URL retrieved June 26 2006
The Davis brothers also became involved in Florida state politics, supporting conservative causes. It is reported that their financial support helped George Smathers beat incumbent U.S. Senator Claude Pepper in 1950. Former U.S. Treasury Secretary Donald Regan is reported to have said of his financial guru, James E. Davis: "When J.E. calls, I listen." However, they are engaged in non-conservative philanthrophy as well; it is reported that after reading Booker T. Washington's Up From Slavery, James E. Davis began a program of Winn-Dixie supporting historically Black colleges and universities.
In 2003 the company's stock was the worst-performing of the S&P 500, a year which saw the chain with over 1000 stores.
In April 2004 Winn-Dixie announced the closure of 156 stores, including all 111 stores located in the Midwest. Included were over 20 stores that had operated under the Thriftway name in and around Cincinnati, Ohio; [link] they had been purchased by Winn-Dixie in 1995. The company had been hit hard by competition, especially from Publix and Wal-Mart. Another forty stores in the Atlanta area were converted to their Save Rite Grocery Warehouse brand, as an alternative to store closure. Also, all of the stores in North Carolina and a vast majority of those in South Carolina closed.
On February 22, 2005, Winn-Dixie filed for bankruptcy. On June 21, it announced the sale or closure of 326 stores, resulting in the loss of over 22,000 jobs. Once the restructuring had completed, Winn-Dixie was to operate in the Bahamas, throughout Florida, and in four of the Deep South states, including the southeastern half of Louisiana, the southeast corner of Mississippi, most of Alabama, and the southwest corner of Georgia.
On February 28, 2006, 35 more stores were announced as being sold or closed within the coming months, with the Central and South Florida areas being the most affected. [link] On March 31, it was announced that the chain will sell its 12 Bahamian locations, which had been operated by a wholly owned subsidiary, W-D Ltd, under the names City Market and Winn-Dixie.[link]
On June 29, 2006, Winn-Dixie announced that it had filed a plan of reorganization with the U.S. Bankruptcy Court for the Middle District of Florida. The company hopes to emerge from Chapter 11 protection by the end of October in a much stronger financial position.[link]
Their bankruptcy case is being handled in Jacksonville area by Steve Busey and Cyndi Jackson of the law firm Smith, Hulsey, & Busey, and by the New York firm of Skadden, Arps, Slate, Meagher & Flom LLP.
Much of the store's difficulties, some commentators observe, are due to the emergence of Wal-Mart as the nation's leading grocer during the late 1990s and early 2000s, especially in the chain's Southeastern heartland. In some cases, the opening of a Wal-Mart "Supercenter" in close proximity to an existing Winn-Dixie store led directly to the latter's demise.
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