A&P files for bankruptcy, again

The firm stated it is left with no selection however to promote as lots of its 296 shops as attainable.

Some of the rivals the grocery chain has confronted is Wal-Mart…

There is a report that the operator of the grocery store A&P has given up survival and are now filing for Chapter 11 bankruptcy.

Storied supermarket chain Great Atlantic & Pacific Tea Co Inc., better known as A&P, filed for Chapter 11 bankruptcy protection for the second time in five years and said it was in discussions with buyers for some of its stores. The offers will be tested at a bankruptcy auction. A&P operates in Connecticut, New York, New Jersey, Pennsylvania, Delaware and Maryland under the A&P, Best Cellars, Food Basics, Food Emporium, Pathmark, Superfresh and Waldbaum’s brands.

A&P has about 28,500 employees, of which about 90 percent are union employees.

In its heyday in the early 20th century, A&P operated more than 15,000 stores.

“We are very happy to have the opportunity to expand our presence in greater New York and to serve new customers”, said Don Sussman, Stop & Shop’s New York Metro Division president, in a statement.

As the grocer bled cash in recent months, some vendors demanded faster payments and threatened to cut off supplies, A&P’s financial advisory firm said in a court filing.

In addition to the senior loans, the company took on $420 million in junior-ranking debt as part of its exit from bankruptcy in 2012, according to court documents.

The Montvale, N.J. company said in court papers filed Sunday that it had received “stalking horse” bids totaling nearly $600 million for 120 stores but no bidder has been willing to assume its liabilities – in particular, substantial labor and pension obligations – in connection with an acquisition.

A&P was founded in lower Manhattan in 1859 as a mail-order tea and spice business by merchants George Huntington Hartford and George Gilman. It was the Walmart of the day, the giant company accused of putting mom-and-pop grocery stores out of business. From February 2014 through February 2015, A&P lost more than $300 million.

This time, the company is claiming competition, and what it calls “inflexible collective bargaining agreements” and “legacy costs”.