Winn-Dixie Provides Hurricane Update
JACKSONVILLE, Fla., Sept. 1 /PRNewswire/ -- Winn-Dixie Stores, Inc. ("WNDXQ") announced today that it has 153 ongoing operating stores in the states of Louisiana, Mississippi and Alabama. These states were impacted by Hurricane Katrina earlier this week.
Of these, 98 stores are operating with full power. In addition, 18 stores are currently operating with generator power and are primarily selling non- perishable merchandise. The Company has 37 stores in the impacted areas that are currently closed, including 33 stores in Louisiana, four in Mississippi.
While some of the temporarily closed stores will be able to re-open after utilities are restored to affected areas, there are a number of stores that have sustained significant physical damage and will be impacted for a longer period of time. The Company continues to update its web site on individual store status as new information becomes available.
The Company maintains insurance coverage for windstorm, property and flood damage and business interruption, and expects to be adequately covered for losses due to the hurricane, although it is difficult to predict the amount or timing of any insurance recoveries at this time.
Winn-Dixie is aiding the area's recovery efforts by working with local authorities and agencies to transfer non-perishable items to where they are most needed. Through the Company's Neighbor Helping Neighbor program, Winn- Dixie stores are accepting voluntary donations from customers to benefit the American Red Cross Disaster Relief Fund.
Peter Lynch, President and Chief Executive Officer, said, "Our Associates, customers and neighbors in the affected communities are in our hearts and prayers. We are doing everything within our means to provide support to Associates in the affected areas and to restore operations at our stores as quickly as possible."
At this time, Winn-Dixie's management is focused on restoring store operations and assisting with hurricane relief efforts. The Company expects to develop an assessment of the impact of the storm on its financial performance and ongoing reorganization activities when it is able to obtain more complete information about its stores and related matters.
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/ .
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, particularly while the Chapter 11 cases are proceeding.
There can be no assurance that the Company's Chapter 11 reorganization process will be successful. Risk factors related to its efforts include, but are not limited to, the following: the Company's ability to continue as a going concern and to create positive cash flow from operations; the ability of the Company to operate under the terms of the Company's DIP credit facility; the Company's ability to obtain court approval of the motions filed with the bankruptcy court from time to time in the Chapter 11 process; the Company's ability to successfully implement key elements of its restructuring, including the sale or closure of selected retail DMAs, the sale or closure of under- performing stores in retained DMAs and the sale or closure of excess distribution and manufacturing facilities, as well as the ability to appropriately align general and administrative expenses of the resulting organization; 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 ability of the Company to develop, confirm and consummate a plan or 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 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: adverse affects on operations from Hurricane Katrina; the amount and timing of receipt of insurance proceeds related to the impact caused by Hurricane Katrina; 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 initiatives; the success of the Company's initiatives to increase sales and market share, particularly in light of over two years of sustained sales declines; 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 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; and the Company's ability to complete its assessment of internal control over financial reporting under the Sarbanes-Oxley Act of 2002 on a timely basis and without identifying any material weaknesses.
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 April 6, 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.
Source: Winn-Dixie Stores, Inc.
CONTACT: Investors, +1-212-521-4835, or media, +1-866-449-8608
Web site: http://www.winn-dixie.com/
-------
Profile: 55
