BOCA RATON – Shoppers who frequent the Winn Dixie Store at 291 West Camino Real will soon have to find another place to get their groceries.
The West Boca store is one of 30 being shuttered by the 80-year-old chain that emerged from bankruptcy only four years ago. It has been suffering financial problems since the middle of the decade, worsened by the ongoing struggling economy. It came out of bankruptcy with 514 stores, but had more than 900 in Florida, Alabama, Mississippi and Georgia at its height.
CEO Peter Lynch said the economy in Florida is worse that in other areas of the country. That may account for the fact that 24 of the 30 stores going out of business are in the Sunshine State, including nine in Palm Beach County.
Stores closing their doors in the county include one in Delray Beach, at 1565 S. Congress Ave.; two in Boynton Beach, 4770 Congress Ave. and 9840 Military Trail; 6356 Forest Hill Blvd. in Greenacres; 6600 Hypoluxo Road, 4105 State Road 7 and 6406 West Lake Worth Road, all in the Lake Worth area and 5060 Seminole Pratt-Whitney Road in the Loxahatchee area.
Lynch said the shutdown is the result of the weak economy. The closings will eliminate 120 jobs in its corporate and field support staffs, but some new jobs will be created, and soon-to-be-ex employee may apply for them.
The Jacksonville-based grocery chain released the list of stores to be closed after company officials had a chance to inform the affected employees.
Lynch said the stores being closed cannot operate profitably, and he said the year ahead shows few signs of improvement.
He said the closings should be completed by the end of the first quarter of fiscal 2011 for Winn-Dixie, which ends on Sept. 22, 2011.
Winn Dixie said the cutbacks will result in annual savings of $12 million to $17 million, but the firm expects to pay charges of $35 to $50 million in the first quarter, including lease-related items and severance costs.