TUESDAY December 3, 2019
Public legal notices begin on page 3
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Daily Record JACKSONVILLE
Acosta says consumer behavior, JACKSONVILLE industry trends led to bankruptcy
Winn-Dixie seeks $850K to open at Gateway
Daily Record
The Jacksonvillebased packaged-goods marketing company filed reorganization petitions Sunday. BY MARK BASCH
City Council President Scott Wilson files a bill to help the grocer open in the space that Publix will vacate.
Daily Record Daily Record JACKSONVILLE
BY MIKE MENDENHALL
CONTRIBUTING WRITER
STAFF WRITER
Acosta Inc. and affiliated companies filed their prepackaged Chapter 11 bankruptcy petitions Sunday, saying in court documents changes in consumer behavior and industry trends have hurt its business in recent years. The Jacksonville-based sales and marketing company announced last month it would file a prepackaged reorganization plan to convert about $3 billion of debt to equity, with the approval of a majority of its creditors. Acosta filed its petitions in U.S. Bankruptcy Court for the District of Delaware. The court documents do not give specific financial details for Acosta but its disclosure statement said the company has lost $631 million in revenue since 2015, without giving a figure for total revenue. Florida Trend magazine estimated Acosta’s 2018 revenue at $2.3 billion. “Acosta has faced the same pressures affecting the retail industry as a whole, as well as certain Acosta-specific challenges,” the disclosure statement said. “In the past five years, Acosta has suffered from the industry headwinds facing CPG (consumer packaged goods) manufacturers and the resulting consolidation and downsizing of CPG manufacturers’ marketing spend. Acosta’s sales and marketing model also has faced pressure as the industry has moved away from Acosta’s historical processes.” Several trends have reduced Acosta’s revenue, the statement said. “Specifically, consumers have shifted away from traditional grocery retailers where Acosta has had a leadership position to discounters, convenience stores, online channels, and organic-focused grocers, where Acosta has not historically focused,” it said. However, “Acosta-specific operational and strategic challenges”also have hurt
its executive team in July. Although it is not mentioned in the disclosure statement, 28-year company veteran Darian Pickett was promoted to CEO of Acosta in July. Acosta lost several key clients in July, which hurt its liquidity position and impacted its ability to pay off debt. The Chapter 11 reorganization not only gives the company’s creditors the best opportunity for recoveries of debt, but also
Winn-Dixie Stores Inc. requested $850,000 in city financial incentives to open a store at Gateway Town Center in the space that Publix Super Markets Inc. will vacate at the end of the year. Jacksonville-based WinnDixie informed officials with the city Office of Economic Development that the grocery chain plans to renovate and lease the 28,120-square-foot store at 5210 Norwood Ave. by the end of the first quarter 2020. Publix, which has anchored the Northwest Jacksonville shopping center for 20 years, announced in October it would not renew its lease with landlord Gator Investments LLC and would vacate by Dec. 28. City Council President Scott Wilson filed Ordinance 2019-870 Nov. 26 at the request of Mayor Lenny Curry. The bill would take $850,000 from the Northwest Jacksonville Economic Development Fund to “offset costs associated with redeveloping and outfitting” the Publix space. If the Gateway area is left without a grocery store, it would create a food desert for the neighborhood’s residents. The city’s economic development office considers an area without a grocery store located within a mile a food desert. Council earmarked $3 million from the trust fund in 2018 to address food deserts in the city’s
SEE ACOSTA, PAGE 2
SEE WINN-DIXIE, PAGE 2
JACKSONVILLE
Photo by Monty Zickuhr
The headquarters of Jacksonville-based Acosta is in Southpoint at 6600 Corporate Center Parkway.
the company, it said. “For instance, the Company has traditionally operated a syndicated model, wherein Acosta associates typically serve multiple CPG clients at the same time. The sales and marketing industry has moved, however, to a dedicated team model, pursuant to which one SMA team works for one CPG client,” it said. “Though Acosta is shifting to a dedicated model, the transition has been slow in achieving significant results.” Other changes included a revamping of
San Marco Square building sold A group of investors paid $2.22 million for a 5,613-square-foot building in the heart of San Marco Square. Husein Cumber and brothers Ryan and Jonathan Davis bought the property at 1958-1966 San Marco Blvd. from from Deco Partnership LLC of Ponte Vedra Beach. Built in 1927, the property comprises four spaces for retailers that include the Reve women’s clothing store, Miriam’s Jewelry and Stubbees honey purveyors. JuiceBox restaurant, which serves smoothies, juices and acai bowls, plans to open in the fourth space.
VOLUME 107, NO. 12 • ONE SECTION