Philip Wright says he's a frequent Bi-Lo shopper, and he's glad the company is coming out of bankruptcy protection and staying open.
"It's convenient for me -- not too big," he said Thursday outside the Bi-Lo store on Signal Mountain Road.
More than a year after filing Chapter 11 bankruptcy, Bi-Lo has come out as a stronger, leaner business ready to compete in the rough-and-tumble grocery marketplace, officials said.
Michael Byers, Bi-Lo's chief executive officer, said the grocer with about 30 stores in the Chattanooga area is "excited to move forward as a financially stronger company."
He said the company, headquartered in Greenville, S.C., has bolstered its balance sheet and enhanced its financial flexibility.
Texas-based Lone Star Funds has made a $150 million equity investment and will remain majority owner, according to Bi-Lo. Credit Suisse is committing $200 million in financing while General Electric Capital is providing $150 million in credit, according to the company.
Lorrie Griffith, editor of industry publication The Shelby Report, said Bi-Lo's management knows it has work to do, but it's dedicated to the business.
"They'll give it every chance to work," she said, adding it remains to be seen if the company can compete with Wal-Mart, Publix, Food Lion and other chains.
Ms. Griffith said Mr. Byers has put together an experienced team of managers to make needed changes.
"They're looking at their operations from top to bottom," she said.
WHAT HAPPENEDBi-Lo has emerged from bankruptcy protection. In March 2009, it had filed a voluntary petition for bankruptcy with officials saying tight credit markets had prevented it from refinancing a loan coming due.
Donna Mize, a Signal Mountain resident who was shopping Thursday, said she likes not having to go from one end to the other of a general all-purpose store to find what she wants.
"Everything is close," she said.
Bi-Lo, which has trimmed its number of stores from 214 to 207, traces its roots to Red Food Stores, which long operated in the area.
Last year, Delhaize Group, the Belgian owner of Food Lion, said it had agreed in a nonbinding letter of intent to buy a substantial majority of Bi-Lo's assets for $425 million, but the deal fell through.
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