JACKSONVILLE, FLA. — Winn-Dixie Stores here said it has filed suit against Dollar General, alleging it is breaking restrictive lease covenants by selling too many food items at stores in more than 100 centers where Winn-Dixie is the anchor tenant.
The suit was filed in U.S. District Court in West Palm Beach, Fla.
According to a Winn-Dixie spokesman, Dollar General is "knowingly violating the legal, non-compete provisions of Winn-Dixie leases in shopping centers in which both businesses operate" — an issue reportedly litigated successfully by Winn-Dixie in 2007.
"Winn-Dixie's decision to operate a grocery store at a particular location is typically contingent on obtaining the exclusive right to sell groceries within the store’s shopping center," the chain's spokesman told SN.
A spokeswoman for Dollar General told SN, "We strongly disagree with the allegations, and we plan a rigorous defense."