A Food City grocery store in Clinton, Tenn.Food City will purchase 29 Bi-Lo Supermarkets in the Chattanooga market.
The purchase includes eight stores in Georgia and 21 pharmacies.
"We are extremely excited to have this opportunity to expand our operation into the Chattanooga and north Georgia market, as part of our strategic growth plan," said Steven C. Smith, Food City president and chief executive officer. "We very much look forward to joining their retail community and serving the region."
The company plans to invest over $40 million in improvements to the locations during the first year.
Plans have not been finalized, but Food City anticipates revamping the units and hiring the vast majority of Bi-Lo's nearly 2,000 store associates.
Food City is headquartered in Abingdon, Virginia, and currently operates 104 retail supermarkets in Southeast Kentucky, Southwest Virginia and Northeast Tennessee. The company traces its roots to 1955, when founder Jack Smith opened his first store in Grundy, Virginia.
Affected grocery stores in Tennessee
7804 East Brainerd Road, Chattanooga 6951 Lee Highway, Chattanooga 1600 East 23rd Street, Chattanooga 4510 Highway 58, Chattanooga 703 Signal Mountain Road, Chattanooga 3801 Tennessee Avenue, Chattanooga 3600 Hixson Pike, Chattanooga 4011 Brainerd Road, Chattanooga 255 Ocoee Crossing North, Cleveland 2310 McGrady Drive, Cleveland 420 Market Street, Dayton 6723 Ringgold Road, East Ridge 3715 Ringgold Road, East Ridge 841 U.S. 411 North, Etowah 8634 Highway 58, Harrison 5604 Hixson Pike, Hixson 8530 Hixson Pike, Hixson 1667 Ooltewah-Ringgold, Ooltewah 9213 Lee Highway, Ooltewah 3901 Dayton Boulevard, Red Bank 10161 Old Dayton Pike, Soddy Daisy
Affected grocery stores in Georgia
342 Blue Ridge Street, Blairsville 502 G.I. Maddox Parkway, Chatsworth 1287 N. Glenwood Avenue, Dalton 531 Battlefield Parkway, Fort Oglethorpe 311 North Main Street, LaFayette 319 Chickamauga Avenue, Rossville 820 Mission Ridge Road, Rossville 112 Crimson Drive, Trenton