This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

10 Once-Bankrupt Companies Primed for a Comeback (Update 1)

6. BI-LO Supermarkets

BI-LO Supermarkets, a regional supermarket chain in the southeast, is making aggressive industry plays after it emerged from a 2010 bankruptcy.

The Greenville, S.C.-based company founded in 1961 is owned by private equity fund Lone Star, which bought the chain and Bruno's Supermarkets in 2005. After emerging from a 13-month bankruptcy in 2010, the company is not on the acquisition hunt.

In December, the BI-LO bought Winn-Dixie Stores (WINN) for $560 million, or $9.50 a share, a 75% premium.

With Winn Dixie, BI-LO's merged supermarket business will contain 690 stores in the southeast, which employ over 63,000 workers.

While other privately-owned supermarket chains like Food Lion have previously been reported to be interested in buying BI-LO, the company and its private owners seem to be acquirers. But that may set up for a future sale or share offering. In January, the firm filed for an IPO of its Del Frisco's investment, in an effort to raise $100 million.

Meanwhile, BI-LO is growing opportunistically in states like North Carolina, South Carolina, Georgia and Tennessee as part of a multi-year bankruptcy plan. It's competitors include Safeway (SWY), Supervalu (SVU) and Kroger (KRO), among other regional supermarket powerhouses.

Currently, the deal is one of the most ambitious acquisition attempts within the foods space in 2011. According to Bloomberg data, buying Winn Dixie was the third biggest merger in the foods space in the last twelve months. With the company, BI-LO will add 480 retail grocery locations, including approximately 380 in-store pharmacies, in gulf states like Florida, Alabama, Louisiana, Georgia and Mississippi.

For more on Winn Dixie, see 6 stocks that will benefit from reverse migration.

6 of 11

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
CIT $44.07 0.00%
DLPH $77.49 0.00%
LYB $86.56 0.00%
SEMG $78.88 0.00%
SIX $48.56 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs