Winn-Dixie loses $24.6M for quarter
Thursday October 26, 3:12 pm ET
Winn-Dixie Stores Inc. released its first quarter financial statement Wednesday for the 12 week period ending Sept. 20.
Net sales were up for Winn-Dixie in its first quarter, but the grocer still lost $24.6 million.
Net sales of $1.6 billion were up 12 percent compared with $1.5 billion for the first quarter ending Sept. 21, 2005. The loss for Winn-Dixie, which filed for Chapter 11 bankruptcy in February 2005, was down from the $552.5 million loss in the first quarter in fiscal year 2005.
The company did gain $16.8 million from discontinued operations during bankruptcy for the quarter, which was included in net loss. Closure of 357 out of 374 stores in fiscal year 2006 ending June 28 were counted as discontinued operations in the statement. Winn-Dixie has 520 retail stores as of Sept. 20.
A confirmation hearing for Winn-Dixie's reorganization plan was held Oct. 13 but a decision on whether the company will pull out of bankruptcy has not yet come down. Once Winn-Dixie has approval by the U.S. Bankruptcy Court for the Middle District of Florida to emerge from bankruptcy, the subsequent financial statements "may materially change" because of "fresh start" provisions that require all assets and liabilities to be restated to their fair value, the quarterly report states. At that point, the company's financial statements will no longer be comparable to previous quarters.
Published October 26, 2006 by The Business Journal
