Will BI-LO sell high?

BRUSSELS, Belgium —Supermarket operator Delhaize Group has expressed a desire to buy out most of southern U.S. supermarket chain BI-LO, the Belgian company announced earlier this month.

Delhaize sent BI-LO a nonbinding letter of intent stating that it wished to buy a “substantial majority” of BI-LO’s assets for $425 million. The chain, headquartered in Mauldin, S.C., operates 214 stores in North Carolina, South Carolina, Tennessee and Georgia, and employs more than 15,000 people. Of the 214 stores, 120 have pharmacies, according to Chain Store Guide.

Delhaize, which operates the competing Food Lion chain, made the move in light of BI-LO’s recent filing for Chapter 11 bankruptcy protection. “We at Food Lion LLC have great admiration for the associates and stores at BI-LO,” Delhaize EVP and Food Lion president and CEO Rick Anicetti stated. “We believe our markets and service philosophy are complementary, and we look forward to continuing our discussions with BI-LO.”

BI-LO has signed the letter of intent, which signals that it prefers to sell the assets to Delhaize, though the offer remains subject to court approval and other conditions.

“All options for BI-LO remain under consideration, and we believe it is important to carefully review our options and determine the most appropriate course of action in the context of the Chapter 11 process,” BI-LO president and CEO Michael Byars stated. “The company plans to work constructively with all parties in order to effectuate a successful restructuring.”