JACKSONVILLE, Fla. — A group of Winn-Dixie shareholders has asked the company to buy back shares of its stock to increase the share price, or else look for an investor to buy the company outright.
Schultze Asset Management, which said it serves as investment advisor to various shareholders owning 1.5% of the common stock of Winn-Dixie Stores, recommended that the company use available cash and issue additional debt to buy back $590 million worth of its stock.
"We believe this course of action, repurchasing stock with the company’s available excess cash, is more likely to create shareholder value than management’s current strategy of investing hundreds of millions of dollars on store remodeling," the investor group said it a letter to Winn-Dixie board.
Alternatively, Winn-Dixie should "hire a reputable investment bank to help explore a sale of the entire enterprise at a fair price."
Winn-Dixie could not be reached for comment.
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