Winn-Dixie Stores (WINN) will close 30 stores and reduce staff as part of a multi-million dollar cost-cutting plan.
The company plans to eliminate 120 positions on top of those directly related to the store closure, Winn-Dixie said in a statement. The annualized savings will be in the range of $12 million to $17million and begin to be realized after the end of the first quarter of fiscal 2011.
"We continue to operate in a particularly difficult economic and retail environment in the Southeast," CEO Peter Lynch said. "The actions we are taking today will enable us to lower our cost structure."
The company will incur charges of $35 million to $50 million related to the cost-cutting plan. The charges will be incurred in the first quarter of 2011.
The 30 store locations to be closed will available on July 29. Winn-Dixie reaffirmed its guidance for fiscal 2010 earnings.
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