Huffington Post: Winn-Dixie still in distress

[Jaxson]

Winn-Dixie Stores Inc. (NASDAQ: WINN) is not alone in its quest for a turnaround in grocery land. The company emerged from bankruptcy in 2006 with fewer stores than it had in the 1960′s. Its effort to modernize stores has yet to bring any substantial revenue increase and its current Thomson Reuters expectation if for fiscal June 2011 and June 2012 to have financial losses and lower revenues coming in under $7 billion versus an average of about $7.3 billion in the three prior years.

The problem is that with shares at $6.41, the stock is down more than 75% from its post-bankruptcy peak and the slide down in shares seems to be almost constant. You could almost make the same argument against SuperValu (NYSE: SVU), except that it did not have to go through a bankruptcy restructuring. It is also impossible to ignore what has happened with Great Atlantic or A&P. Wal-Mart Stores Inc. (NYSE: WMT) and similar competition is a culprit, but at the end of the day it seems that there are two groups when it comes to grocery chains: well-run grocery chains and then all the losers.

Read more at 24/7 Wall Street.

Source: http://www.huffingtonpost.com/2011/01/22/9-great-american-companie_n_812565.html#s228242&title=WinnDixie