In a statement Monday, Delhaize Group said it was in non-binding talks to acquire "a substantial majority" of BI-LO's assets. It said the assets to be acquired had revenue of over $2 billion last year.
Delhaize said it intends to integrate BI-LO's shops into its Food Lion chain of shops. Food Lion has more than 1,300 stores in 11 states with 74,000 employees.
Mauldin, S.C.-based BI-LO LLC is a privately held company that operates 214 supermarkets in South Carolina, North Carolina, Georgia and Tennessee and employs around 15,500 people. It filed for Chapter 11 protection in U.S. Bankruptcy Court in March.
Delhaize said the offer was subject to bankruptcy court approvals and that it hoped to complete a transaction after obtaining a non-appealable sale order from the court.