A&P Files for Bankruptcy, to Sell Stores
July 21, 2015,
MONTVALE, N.J.-The Great Atlantic & Pacific Tea Co. (A&P) has filed for chapter 11 bankruptcy protection at the U.S. Bankruptcy Court for the Southern District of New York.
According to a statement from the supermarket company, it has also reached agreements to sell about 120 stores, and will continue “strategic sales” through the chapter 11 process. A&P has also decided to close 25 stores in the near term “due to lack of interest and significant ongoing store operating losses.” The company also said all asset and store sales will be conducted through a court-supervised sale process, subject to court approval and “certain other conditions.”
The company operates stores under the names A&P, Best Cellars, Food Basics, The Food Emporium, Pathmark, Superfresh and Waldbaum’s.
According to the bankruptcy filing, A&P’s trade debt to its top 40 creditors totaled about $86 million. Press reports said this is A&P’s second bankruptcy filing in the past five years.