Reuters: BI-LO Goes on the Block
The BI-LO supermarket chain, owned by Lone Star Funds, is
up for sale and drawing interest from private equity firms and other grocers,
according to a Reuters report.
Among the bidders are Kroger and Publix, “a
source familiar with the matter” told
the news service.
While Kroger had no comment, Publix spokesperson Maria Brous
called the story a “rumor.”
“We have not to my knowledge put a bid in for any BI-LO locations or
expressed any interest in any of their locations,” Ms. Brous told The
BI-LO, which operates 207 supermarkets in the Carolinas,
Georgia and Tennessee is the number one or two conventional grocer in roughly
75 percent of the markets where it has stores, according to a Reuters report
The chain emerged from Chapter 11 in May. It had filed for bankruptcy
protection in March 2009, citing a weak economy and competitive pressures as
the reasons behind its action.
Discussion Questions: What do you think is likely to happen to BI-LO, assuming Reuters is
correct in reporting the chain is for sale? Do you think the chain has the
wherewithal to compete effectively if it is not sold?
- Exclusive: Lone Star’s BI-LO up for sale: source – Reuters
- Kroger, Publix reported as bidders for Bi-Lo – The Packer