LOS ANGELES (LALATE) – A&P filed for bankruptcy today after store closures failed to heal A&P’s problems. Great Atlantic & Pacific Tea Co. (NYSE: GAP.N) – the chain that owns A&P, Waldbaum’s, The Food Emporium, Super Fresh, Pathmark and Food Basics – filed the Chapter 11 matter today in New York asserting $1 billion in assets and $1 billion in debt.
The company based out of Montvale, New Jersey said no further store closures will occur, that business will be unchanged during the matter.
“The debtors are one of the nation’s leading food and drug retailers,” states the court document. In July the company closed 25 stores in five states; this fall it began a sale of seven additional stores in the northeast.
A&P Chief Executive Sam Martin said in a news statement tonight: “We have taken this difficult but necessary step to enable A&P to fully implement our comprehensive financial and operational restructuring.
“While we have made substantial progress on the operational and merchandising aspects of our turnaround plan, we concluded that we could not complete our turnaround without availing ourselves of Chapter 11.” Kirkland & Ellis LLP is handling the matter, Re: Great Atlantic & Pacific Tea Co. 10-24549.