A&P FILES FOR CHAPTER 11
MONTVALE, N.J. — Montvale-based The Great Atlantic & Pacific Tea Company (A&P) has filed for Chapter 11 Bankruptcy protection under the U.S. Bankruptcy Court for the Southern District of New York. The filing will facilitate A&P's financial and operational restructuring, which is designed to restore the company to long-term financial health. The company will continue to operate its 395 stores, which are located throughout Connecticut, Massachusetts, New York, New Jersey, Pennsylvania, Delaware, Maryland, Virginia and Washington, D.C.
Sam Martin, president and CEO, stated in a press release, “We have taken this difficult but necessary step to enable A&P to fully implement our comprehensive financial and operational restructuring.”
In October, the company announced a turnaround plan, which included a new management team, reducing structural and operating costs, improving the company's value proposition for customers, and enhancing the customers' experience in the stores.
The reorganization will be lead by Frederic F. Brace serving as chief restructuring officer. Brace currently serves as chief administrative officer for A&P.
Additionally, the company has entered into an $800 million debtor-in-possession facility with JPMorgan Chase & Co. that must receive court approval The financing will enable A&P to continue paying local suppliers, vendors, employees and others in the normal course of business.
A&P has approximately 40,688 employees and owns a variety of brands including America's Choice, America's Choice Healthy Kids, Hartford Reserve, Live Better Wellness, America's Choice Gold, Smart Price, Greenway and Via Roma. The company's retail banners include A&P, Waldbaum's, The Food Emporium, Super Fresh, Pathmark, Best Cellars and Food Basics.
— Amy Bigley