The name outside the Bi-Lo on West Floyd Baker Boulevard could change if a deal working its way through a U.S. Bankruptcy Court ultimately is approved.

Belgium-based Delhaize Group, parent company of the North Carolina-based Food Lion supermarket chain, announced last week that it had entered into a letter of intent to acquire the majority of Mauldin-based Bi-Lo’s assets, namely stores and inventory, for $425 million.

Bi-Lo, which filed for bankruptcy protection last March, counts among its assets 214 stores in South Carolina, North Carolina, Tennessee and Georgia, including the Gaffney store.

Food Lion has two locations in Cherokee County — one supermarket is located on East Frederick Street and another is located on West Cherokee Street in Blacksburg. Overall, Food Lion operates more than 1,300 supermarkets in 11 states.

Delhaize Group said in a prepared statement about the proposed acquisition that it hoped to close on the deal shortly after obtaining a final non-appealable sale order from the U.S. Bankruptcy Court. No timelines for such approval have been announced.

Bi-Lo, meanwhile, said in a prepared statement released at the same time as the Food Lion offer went public that it was continuing to make significant progress in its efforts “to maximize the value of the business and to return the highest and best recoveries to our creditors and other constituencies.”

While confirming the Delhaize Group offer, Michael Byars, president and chief executive of Bi-Lo, said in a prepared statement released last week, “All options for BI -LO remain under consideration, and we believe it is important to carefully review our options and determine the most appropriate course of action in the context of the Chapter 11 process.”

Bi-Lo, which employed about 15,500 people as of last March, filed for bankruptcy protection due to a fast-approaching debt it could not pay or re-negotiate on better terms.

The company had two large debts on the books at the time of its filing, including a $100 million credit line and the $260 million term loan. Lenders of the $100 million credit line worked out a deal to continue financing the company, even through bankruptcy. But agreements couldn’t be reached with the lenders behind the $260 million term loan, BILO’s attorneys said in legal filings.

The term loan was due last March 26.

BI-LO painted itself in court documents as being hard hit by increasing competition and general economic instability. Its earnings before taxes and other items declined from $114 million in 2006 to an estimated $78 million in 2008.

As part of its reorganization, Bi-Lo indicated it would shed underperforming stores and get 35 already closed locations, for which it was still paying rent, off the books.

Bi-Lo never identified in court filings whether the Gaffney location was one of its underperforming or preferred locations.

Should the asset sale take place, it’s expected that there would be some overlap between Food Lion and Bi-Lo stores. The Food Lion and Bi-Lo locations in Gaffney are 1.87 miles apart, according to an online mapping service, but are on opposite sides of the downtown area.