Feb 12, 2004 12:00 PM, from staff and wire reports

Ahold USA, the United States branch of Netherlands-based grocery store giant Royal Ahold, plans to divest its BI-LO and Bruno's subsidiaries, two leading supermarket chains in the southeastern United States.

Divestment of BI-LO and Bruno's is part of AholdÕs strategy to strengthen its financial position by reducing debt. Ahold intends to focus on growing its remaining US food retail operations, including Stop & Shop, Giant-Landover, Giant-Carlisle, Tops, and Peapod.

BI-LO, headquartered in Mauldin SC, was acquired by Ahold in 1977. The company operates 292 stores and employs some 27,000 workers. Birmingham AL-based Bruno's, acquired by Ahold in 2001, operates 178 stores and has about 14,500 employees.