VALDOSTA — The evening of Feb. 11, 2005, Winn-Dixie Stores Inc. and 23 of its U.S. subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in order to address the financial and operational challenges that have hampered its performance.

In June, the company announced its plan to “take action to strengthen performance and position company for long-term profitability.” The new store “footprint” would close 326 stores eliminating more than 22,000 positions. Stores would remain open only in the strongest markets.

These cuts would reduce overhead costs by about $101 million a year and rent by $1.8 million a year, a recent article in the Atlanta Journal-Constitution said.

Chapter 11 bankruptcy of the well-known supermarket chain Winn-Dixie hit Southern Georgia hard. Many small towns and rural areas relied on the store as the sole supplier of grocery products. Local stores in Valdosta, Lake Park, Tifton, Cairo and Moultrie were spared; however, residents in Adel, Douglas, Thomasville and Waycross watched their Winn-Dixie facilities close.

Has the reduction been profitable as expected?

The Atlanta Journal-Constitution story, by Elaine Walker, led off by saying Winn-Dixie Chief Executive Peter Lynch was booked with lunch dates until July. His mid-day meal plans stem from bets with store managers whom he challenged to boost sales. If goals were reached, he promised to treat the management team to lunch.

Winn-Dixie reported net earnings of $39.9 million for the four weeks that ended Nov. 16, 2005, and a $195.8 million profit for the four weeks that ended Oct. 19, numbers which included a gain on the disposing of discontinued operations.

In spite of the pleasing “top-line,” the supermarket chain is still losing a great deal on operating costs; $26.4 million and $15.4 million in the same respective periods.

Lynch explained that the “back to the basics” approach his company had taken seemed to be working. Winn-Dixie is expected to emerge from bankruptcy in July.

The approach improves organization, adds variety and makes working for the company more enjoyable, which in turn makes service friendlier.

Dennis Gaskins, store manager for Valdosta’s Five Points location, explained that the approach has improved business for Winn-Dixie. He believes the stores are more shopper friendly and more organized. He said his employees enjoy their jobs and make the shopping experience better for everyone involved.

He also said that better coupons and advertisements have helped improve business.

“Everyone is excited about these changes,” Gaskins said. “Our president and his team are really amazing.”

He suggests that customers should expect friendly service and cleaner facilities thanks to the reorganization plan and efforts from staff at every level.