Bi-Lo files for bankruptcy protection

Upstate-based grocery chain Bi-Lo said it filed for bankruptcy protection Monday.

The company said it intends to use the court-supervised process to address some debt that is getting ready to mature.

'We are making significant progress this year and we have seen solid sales momentum and strong cash flow,' Bi-Lo chief executive Michael Byars said in a statement. 'Our strong operations and liquidity position continue to demonstrate the strength of our business model, and the company has continuously satisfied all of its obligations to date, under the term loan and otherwise.

'In a normal credit environment we would have expected to refinance the maturing term loan on reasonable terms in the ordinary course of business. Unfortunately, the current credit environment is very challenging,' he added. 'After extensive discussions with our lenders and careful consideration of all available alternatives, we determined that in order to maintain business operations and customer service without interruption while we address this debt maturity, a court-supervised restructuring is appropriate. We intend to move through this process as quickly as possible, and we firmly believe that this course of action will better position Bi-Lo for continued growth and long-term success.'

Bi-Lo intends to fund operations primarily through its cash on hand and cash generated from operations. The chain has received a commitment for a $100 million debtor-in-possession facility arranged by GE Capital.

The chain has 215 stores in South Carolina, North Carolina, Tennessee and Georgia. All remain open. Fifteen stores are in the Charleston region.

Headquartered in Mauldin, Bi-Lo employs about 15,500. For more details, see Tuesday's editions of The Post and Courier.