Winn-Dixie files bankruptcy reorganization plan

JACKSONVILLE, Fla. — Winn-Dixie Stores Inc. said Thursday it has filed plans to emerge from bankruptcy by the end of October, as the supermarket chain struggles to boost sales amid tough competition and regain customers.

The Jacksonville-based company, which has about two-thirds as many stores as it had when it filed for Chapter 11 reorganization in February 2005, will present the plan to U.S. Bankruptcy Judge Jerry A. Funk at a hearing later Thursday.

The chain wants Funk to approve the plan on Aug. 4 and set in motion the process to get creditors to accept it. Winn-Dixie attorney Stephen Busey said it usually takes about 60 days to do that, meaning the chain could have a confirmation hearing in early October and emerge from bankruptcy later that month.

The plan is bad news for Winn-Dixie’s current shareholders, whose stock will be canceled once the plan of reorganization is approved.