Belgium-based grocer Delhaize Group has entered into a non-binding letter of intent with US retailer BI-LO to acquire a substantial majority of BI-LO’s assets, including associated inventory, for $425m (£266.8m).

The news came in the midst of BI-LO’s bankruptcy proceedings in the US Bankruptcy Court for the District of South Carolina. The included BI-LO assets are estimated to have realised over $2bn (£1.1bn) in sales in 2008. The non-binding offer is subject to approval from the Bankruptcy Court.

Delhaize Group intends to integrate the included BI-LO assets into its wholly-owned network of Food Lion superstores.

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