BI-LO (United States)

BI-LO

Company type	Subsidiary
Industry	Grocery store
Founded	1961
Founder	Frank Outlaw
Defunct	2020
Fate	Brand discontinued; stores sold to Food Lion and others
Headquarters	Jacksonville, Florida , United States
Area served	Georgia, South Carolina, North Carolina (prior to discontinuation)
Products	Groceries
Owner	Southeastern Grocers (prior to discontinuation)
Parent	Southeastern Grocers

This article is about the southeastern U.S. grocery chain. For other uses, see BI-LO.

BI-LO was a grocery store chain based in the United States, operating under the ownership of Southeastern Grocers with its headquarters located in Jacksonville, Florida. Prior to the discontinuation of the BI-LO brand, its supermarkets served customers across Georgia, South Carolina, and North Carolina.

Establishment and Acquisition by Ahold

The origins of BI-LO trace back to 1961 when Frank Outlaw, formerly associated with Winn-Dixie, acquired four grocery outlets in Greenville, South Carolina from the Wrenn and Syracuse chain, forming the Wrenn & Outlaw enterprise. By 1963, the company officially adopted the name BI-LO. The store's name was selected through an internal naming contest initiated by Outlaw, with his secretary Edna Plumblee submitting the winning entry "BI-LO". The brand’s emblem featured a Hereford bull, and fiberglass bull statues were prominently displayed atop each store—a distinctive feature that remained until their removal between 1981 and 1992.

File:Super Bi-Lo Matthews, NC (9779375712).jpg

In 1977, BI-LO was acquired by Ahold, a Dutch multinational retailer. Subsequently, in October 1988, BI-LO expanded by purchasing 21 Kroger stores situated in North and South Carolina. Further growth occurred in August 1990 with the acquisition of Community Cash’s flagship location in Spartanburg, South Carolina.

In February 1994, Ahold purchased Red Food Stores, Inc., integrating its 55 outlets across Georgia, Alabama, and Tennessee into BI-LO by the following year. The introduction of the Bonus card loyalty program came in 1997, leading to a 30% increase in store profitability within its first year.

In 1998, BI-LO sponsored the development of the BI-LO Center (currently known as the Bon Secours Wellness Arena) located in Greenville, South Carolina. In May 2000, BI-LO expanded into convenience retail by acquiring 134 Golden Gallon stores based out of Chattanooga, Tennessee, while maintaining their original branding.

June 2001 marked the launch of FoodSmart, a discount grocery format debuting in Camden, South Carolina. Shortly after, BI-LO purchased eight Harris Teeter locations within South Carolina and transitioned them either into BI-LO or FoodSmart stores. Later that September, Ahold acquired Bruno's Supermarkets headquartered in Birmingham, Alabama and consolidated its operations with BI-LO.

By 2003, BI-LO undertook a strategic redesign focused on appealing to upscale shoppers. This initiative led to the introduction of Super BI-LO stores featuring expanded layouts and enhanced selections emphasizing healthier options, specialty items, and organic products. During this period, both new Super BI-LO locations were opened and existing stores underwent remodeling within affluent communities.

Sale to Lone Star Funds

In 2005, Ahold divested BI-LO/Bruno's to Lone Star Funds. To focus on modernizing existing stores, constructing new locations, and upgrading information technology systems, the new proprietors disposed of 104 BI-LO, FoodSmart, Bruno's, Food Fair, and Food World outlets situated in regions where the brand held limited market share. Additionally, three BI-LO/Bruno's distribution centers were sold to grocery wholesaler C&S Wholesale Grocers, who subsequently converted some of these stores into Southern Family Markets. Among the properties sold were all outlets in the Knoxville, Tennessee vicinity, most of which were promptly taken over by Food City stores.

On March 21, 2007, Lone Star Funds declared the corporate separation of 67 Bruno's Supermarkets and Food World locations from BI-LO LLC, establishing a distinct company headquartered in Birmingham. Less than a month later, on April 16, 2007, Lone Star revealed that the 230-store BI-LO chain was available for purchase. Shortly thereafter, C&S announced the closure of the Chattanooga distribution center that serviced BI-LO stores in the Chattanooga region and parts of North Georgia.

2009 Bankruptcy and Winn-Dixie Acquisition

On March 23, 2009, the company revealed it had filed for Chapter 11 bankruptcy protection after defaulting on a $260 million loan, a consequence of the 2008 financial crisis. The company assured that its stores and daily operations would continue uninterrupted throughout the bankruptcy proceedings. To maintain payroll, benefits, and payments to suppliers and vendors, it obtained a $100 million loan from GE Capital.

In October 2009, Belgium-based Delhaize Group, owner of rival chain Food Lion, announced a preliminary non-binding agreement to acquire $425 million in assets from the company. By November, the company submitted its restructuring plan to the U.S. Bankruptcy Court, supported by a $350 million cash injection from Lone Star Funds. Notably, Delhaize Group and Food Lion were excluded from these restructuring proposals. Lone Star Funds indicated that BI-LO might exit bankruptcy protection by early 2010.

File:The interior of a BI-LO store in Chattanooga, Tennessee.jpg

Inside a BI-LO store located in Chattanooga, Tennessee

The company officially emerged from bankruptcy on May 12, 2010. At that time, BI-LO remained under Lone Star Funds' ownership and was ranked among the Top 75 Retailers by Supermarket News. In August 2010, reports suggested that BI-LO was being offered for sale, with Kroger and Publix expressing interest; however, no transaction materialized.

On December 19, 2011, it was announced that BI-LO would merge with Winn-Dixie, forming an enterprise operating 690 grocery stores and employing approximately 63,000 people across eight southeastern states. Under the terms of the deal, BI-LO acquired Winn-Dixie for $530 million and intended to run it as a subsidiary. The headquarters of the combined entity was later established at Winn-Dixie's former base in Jacksonville, Florida. In early 2013, BI-LO replaced its own private label soft drinks with the "Chek" brand carried by Winn-Dixie stores.

In September 2013, BI-LO agreed to purchase 22 Piggly Wiggly locations in South Carolina and Georgia from Piggly Wiggly Carolina. The following day, BI-LO sold seven of its stores in the Charlotte, North Carolina area to Publix.

Establishment of Southeastern Grocers

Southeastern Grocers was established in September 2013 by Lone Star Funds as the overarching parent company for BI-LO, Harveys, and Winn-Dixie. Following its formation, the company initiated plans to raise up to $500 million through a U.S. initial public offering and intended to trade its common shares under the ticker "SEG". However, on August 19, 2014, Southeastern Grocers decided to withdraw its IPO registration with the SEC, halting its efforts to become publicly traded.

In July 2015, Southeastern Grocers revealed the sale of 21 BI-LO stores located in the Chattanooga area along with eight additional BI-LO outlets in Northern Georgia to K-VA-T Food Stores. These stores were scheduled for conversion to the Food City brand starting August 30, with completion targeted by October 5, 2015. The proceeds from this transaction were anticipated to be utilized for debt reduction. This divestiture marked the exit of BI-LO from the Tennessee market.

By May 2017, Southeastern Grocers announced a plan to close six BI-LO locations across North Carolina and South Carolina as part of a broader corporate decision affecting 20 store closures and the elimination of certain store department leadership positions. Later that month, BI-LO declared additional shutdowns of three stores situated in Newton, North Carolina, as well as Florence and Irmo in South Carolina.

2018 bankruptcy

On March 15, 2018, Southeastern Grocers revealed intentions to file a Chapter 11 reorganization plan before the end of March. The company stated that this restructuring initiative would reduce its total debt by more than $500 million. The proposal included closing 22 BI-LO stores along with an additional 72 locations spanning the Harveys, Fresco y Más, and Winn-Dixie brands.

By March 28, 2018, Southeastern Grocers had reached agreements to sell three BI-LO stores in South Carolina and three Harveys stores in Georgia to independent owners affiliated with Piggly Wiggly. These transactions were part of the broader restructuring support agreement announced by the company. Subsequently, on April 27, 2018, Food Lion declared plans to purchase four BI-LO outlets located in Florence, Myrtle Beach, Surfside Beach, and Columbia, all in South Carolina. Shortly after, on April 30, 2018, Publix disclosed it would acquire the lease, fixtures, equipment, permits, and licenses for the BI-LO store in Seneca, South Carolina, which was scheduled for closure under the restructuring plan. Additionally, two BI-LO stores in Ladson and Mullins, South Carolina—initially closed during the bankruptcy process in April 2018—were acquired by another independent Piggly Wiggly operator and were set to reopen in June 2018.

In May 2018, a U.S. Bankruptcy judge in Delaware approved Southeastern Grocers’ restructuring plan. By the end of that month, the company announced it had finalized its financial restructuring and was emerging from bankruptcy protection. As part of this process, $522 million of debt was converted into equity in Southeastern Grocers; however, the recipients of these equity shares were not disclosed. Upon exiting bankruptcy, Southeastern Grocers operated 575 stores across seven states, a reduction from its previous total of 704 locations. The company also announced plans to renovate 100 stores throughout 2018.

In February 2019, Southeastern Grocers announced another round of closures involving 22 stores. This included shutting down 13 BI-LO locations spread across Georgia, North Carolina, and South Carolina.

Discontinuation of the BI-LO Brand

On June 9, 2020, Southeastern Grocers revealed its plan to gradually retire the BI-LO brand. To facilitate this process, the company agreed to sell 62 stores—comprising 46 BI-LO locations and 16 Harveys Supermarkets—to Food Lion, a subsidiary of Ahold Delhaize. This agreement also included transferring the distribution center in Mauldin, South Carolina to Ahold Delhaize USA Distribution, LLC. The completion of this transition was anticipated by April 2021.

Furthermore, Southeastern Grocers declared its intention to divest the assets of 57 in-store pharmacies operating under the BI-LO and Harveys banners to CVS Pharmacy and Walgreens. This divestiture encompassed all BI-LO pharmacy outlets as well as nine Harveys Supermarket pharmacies situated in Georgia. The handover process was projected to commence within two weeks following the announcement.

By December 21, 2020, two independent proprietors of Piggly Wiggly, with backing from C&S Wholesale Grocers, disclosed their plans to acquire two BI-LO supermarkets from Southeastern Grocers—one in South Carolina and another in Georgia. Both stores had previously been operated as Piggly Wiggly locations before being acquired by Southeastern Grocers in 2013.

In January 2021, Food Lion expanded its holdings by purchasing approximately 70 additional stores across North and South Carolina that were slated for closure. Stores not acquired by other retailers were shuttered by April 18, 2021, marking the conclusion of the BI-LO brand’s six-decade presence in the market.

Slogans

• "Walter Makes Our Produce Superior" – mid-1980s
• "Friendly Service When You BI-LO" – 1988
• "More Than Just Low Prices When You BI-LO" – before 1990
• "Why Pay More..." – from 1990 through the early 2000s
• "The Name That Fits" – during the 1990s
• "Everyone’s Preferred Way to Save" – early 2000s until 2007
• "Genuine Savings. Truly Fresh." – 2007 to 2010
• "Savings Without Compromise." – 2010 to 2015
• "Serving the Southeast with Pride Since 1961." – 2015 to 2021

Private labels

Between late 2004 and 2005, the company systematically discontinued its "BI-LO" private label for store merchandise, introducing a revamped packaging design and a new brand name, "Southern Home." This label was also extended to Harveys Supermarkets following Southeastern Grocers’ acquisition of that chain from Delhaize. In the latter part of the 2000s, the retailer introduced the cost-effective Clear Value line on select items, sourced through Topco. Starting in 2017, the Southern Home brand for private-label goods was gradually replaced by a multi-tiered branding strategy under SE Grocers, which became the exclusive private label across all Southeastern Grocers’ outlets, including Winn-Dixie stores, where its original private label was phased out.