Southeastern Grocers to transfer 29 BI-LO Stores to K-VA-T Food Stores

K-VA-T Food Stores Inc., Abingdon, Va., and Jacksonville, Fla.-based Southeastern Grocers LLC said they have entered into an agreement under which K-VA-T will acquire 29 BI-LO stores located in Chattanooga, Tenn., and Northwest Georgia from Southeastern Grocers. K-VA-T intends to operate all of the stores under the Food City banner and hire the vast majority of their store associates, retaining their years of service.

“We are extremely excited to have this opportunity to expand our operation into the Chattanooga and Northwest Georgia markets. We certainly look forward to welcoming the BI-LO associates to our Food City family and serving the region,” said Steven Smith, Food City president and CEO. “Our consumers can rest assured that we plan to complete the conversion process as quickly as possible, with the least interruption to the normal flow of business. It’s our intention to enhance the overall variety and selection and further develop the services and conveniences provided to our shoppers.”

Ian McLeod, president and CEO of Southeastern Grocers, said the company is pleased to enter into the transaction.

“This was not an easy decision for us, as we have the utmost respect for our associates who serve our customers in these stores so well," he said. "In the approach by K-VA-T, we believe we have identified a strong partner to ensure these 29 stores and our associates are positioned for continued success under another reputable regional brand. On behalf of the management team, I want to thank all of our hardworking BI-LO associates for their dedication and support over many years."

Southeastern Grocers and K-VA-T said they anticipate that the transfer and handoff dates of the 29 BI-LO stores will begin Aug. 30, with all stores fully transitioned by Oct. 5, subject to the satisfaction of customary closing conditions.