Three Bottom Dollar stores to close in PA

Delhaize America announced yesterday it would close Bottom Dollar food stores in North Wales, Chalfont and Reading, PA. The company is also closing 33 Sweetbay stores in Florida and eight Food Lion locations in North Carolina, South Carolina and Virginia. All the stores are expected to close by mid-February.

Bottom Dollar entered the Philadelphia market in October 2010 and quickly expanded. According to the company's website, there are now 37 stores operating in southeastern PA and southern NJ. Last year Bottom Dollar expanded to western PA and eastern Ohio, where it now has 16 stores.

Sweetbay, whose first store opened in Florida in 2004 and which currently has 105 stores throughout the state, will layoff approximately 2,000 employees. According to Delhaize Group CFO Pierre Bouchut, the elimination of the 33 money-losing stores should provide a $40 million benefit to underlying profits annually. He added that he expects Sweetbay to be profitable in 2013.

Bottom Dollar parent ousts 15 execs in restructuring effort

Delhaize America CEO Roland Smith sent a memo to employees last week detailing a high-level restructuring that resulted in the ouster of 15 executives. According to reports about the memo, the company failed to realize cost-saving targets that were established last year. The move follows the appointment of new presidents at Food Lion and Hannaford last month.

In addition to Food Lion and Hannaford, Delhaize America brands include Bottom Dollar, Bloom, Sweet Bay and Harvey's.