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The Great Atlantic & Pacific Tea Company Files For Bankruptcy

The Great Atlantic & Pacific Tea Company Files For Bankruptcy
Photo Credit: kenteegardin via Compfight cc


The Great Atlantic & Pacific Tea Company Files For Bankruptcy

The Great Atlantic & Pacific Tea Company, Inc. (A&P) has recently announced that it has already executed asset purchase agreements related to as much as 120 of its stores. The purchase price is approximately $600 million. Moreover, A&P has also said that they had filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code. The said petition was filed with U.S. Bankruptcy Court for the Southern District of New York.

According to A&P President and Chief Executive Officer Paul Hertz, “After careful consideration of all alternatives, we have concluded that a sale process implemented through chapter 11 is the best way for A&P to preserve as many jobs as possible, and maximize value for all stakeholders.”

Moreover, he added, “The interest from other strategic operators has been robust during the Company’s sales process to date, and we have every expectation that will continue in chapter 11. And while the decision to close some stores is always difficult, these actions will enable the Company to refocus its efforts to ensure the vast majority of A&P stores continue operating under new owners as a result of the Court-supervised process. We greatly appreciate the continued support of our customers, suppliers and employees, who have maintained an unwavering commitment to our business and our customers.”

Furthermore, A&P has also said that it is currently seeking approval from the court with regard to a debtor-in-possession (DIP) financing agreement with Fortress Investment Group. The DIP is worth $100 million. The approval of the said DIP will allow A&P to keep its store operation as well as pay its suppliers, vendors and employees.

The company is known for various brand names including A&P, Best Cellars, Food Basics, Pathmark, The Food Emporium, Superfresh and Waldbaum’s. Together, all brand names have a combined total of 296 stores. In the near future, however, A&P will be closing 25 of its store “due to lack of interest and significant ongoing store operating losses.” The stores that will be closing include:

– A&P (2101 Route 35, Holmdel, NJ)
– A&P (325 Highway 35 South, Cliffwood, NJ)
– Pathmark (1764 Grand Avenue, Baldwin, NY)
– Pathmark (115 Belmont Avenue, Belleville, NJ)
– Pathmark (450 West Swedesford Road, Berwyn, PA)
– Pathmark (2150 Middle Country Road, Centereach, NY)
– Pathmark (85 Ackerman Avenue, Clifton, NJ)
– Pathmark (895 Paulison Avenue, Clifton, NJ)
– Pathmark (50 Racetrack Road & Route 18, East Brunswick, NJ)
– Pathmark (561 Route 1, Edison, NJ)
– Pathmark (420 McDade Boulevard, Folsom, PA)
– Pathmark (651 North Stiles Street, Linden, NJ)
– Pathmark (1043 Route 9 North, Old Bridge, NJ)
– Pathmark (840 Cottman Avenue, Philadelphia, PA)
– Pathmark (85 Franklin Mills Boulevard, Philadelphia, PA)
– Pathmark (1256 Indian Head Road, Toms River, NJ)
– Pathmark (300 South Best Avenue, Walnutport, PA)
– Pathmark (3901 Lancaster Avenue, Wilmington, DE)
– Superfresh (1301 Skippack Pike, Center Square, PA)
– Superfresh (2105 Philadelphia Pike, Claymont, DE)
– Superfresh (863 East Baltimore Pike, Kennett Square, PA)
– Superfresh (1851 South Columbus Boulevard, Philadelphia, PA)
– Waldbaums (2 Westbury Avenue, Carle Place, NY)
– Waldbaums (3620 Long Beach Road, Oceanside, NY)
– Waldbaums (1510 Old Country Road, Riverhead, NY)

In a letter addressed to customers of A&P shops that will be closing soon, A&P Chairman Greg Mays wrote, “This store is one of the stores that will be closing within the next few months. Until then, this location remains fully stocked, and we will continue providing you with the same high-quality products and excellent service that you’ve come to expect from us. We will also continue to honor all existing customer promotional and loyalty programs. In the coming weeks, we will be running significant mark-downs on many of our products. We encourage you to continue to visit this store, up until we close our doors.”

About Jennifer Ong

Jennifer Ong has been covering and writing stories since 1998. Over the years, she has worked on stories on business, health, lifestyle, entertainment and travel. She has also previously written shows for television. When she's not on the job, she enjoys wine and Formula 1.

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