For the second time in five years the Great Atlantic & Pacific Tea Co. has filed for Chapter 11 bankruptcy protection. Anticipation had grown in the past six weeks that the once iconic supermarket chain was bleeding cash and facing increasing pressure from its key suppliers that have demanded tighter credit terms or refused to service the company at all.
According to the filing, which was made late in the evening on Sunday, July 19, the Montvale, NJ-based retailer listed assets and debt of more than $1 billion each. Its largest unsecured creditor listed was C&S Wholesale Grocers with a claim of $39.4 million.
At the time of the filing, made in the Southern District Court of New York in White Plains, A&P operated 296 stores under six banners – A&P, Food Basics, Food Emporium, Pathmark, Super Fresh and Waldbaums.
At the time of the filing, the retailer announced that it had sold 120 of its units to three parties – Cerberus/Albertsons (Acme), $256 million for 76 stores; Ahold USA (Stop & Shop), $146 million for 25 stores; and Key Food Stores, $28 million for 19 stores. Additionally, A&P said it would shortly close an additional 25 stores (store dispositions/sales are broken out at the end of this story). All potential deals are subject to FTC approval.
The acquisition offers are subject to customary legal and bankruptcy court approvals, including the potential for higher bids to be submitted and anti-trust approval. A&P has asked the court for an order requiring other bidders to submit their bids by September 11, 2015, with an expectation that court approval for the sale of the stores would be received by October 15, 2015. If other bids are received, the company is requesting one or more auctions to be held on Sept. 24 and 25 with a sale hearing on October 1.
Fortress Credit Corp. will be the agent for a $100 million loan backed by the 156-year-old grocer’s assets to fund its restructuring, A&P said. A bankruptcy court judge in White Plains, gave the company permission to use as much as half of that financing on a provisional basis.
Under the terms of the new financing, the company must receive court approval of bid procedures within 45 days of filings its bankruptcy. A judge must sign off on sale transactions with a minimum value of $275 million by October 15.
In its filing, A&P stated it was impaired by a “significant cash burn” of an average of $14.5 million a month at the start of fiscal 2015. That rate is expected to accelerate after the bankruptcy filing, according to court papers.
A&P has two loans totaling $270 million, according to trade reports. The loans, along with a $300 million revolving line of credit, mature in September 2019.
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. At the time it had lost around $123 million on sales of almost $1.6 billion in its latest quarter, according to a regulatory filing.
Stores Slated To Be Closed:
- 2101 Route 35, Holmdel, NJ (A&P)
- 325 Highway 35 South, Cliffwood, NJ (A&P)
- 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, TomsRiver, NJ (Pathmark)
- 300 South Best Avenue, Walnutport, PA (Pathmark)
- 3901 Lancaster Avenue, Wilmington, DE (Pathmark)
- 1301 Skippack Pike, Center Square, PA (Super Fresh)
- 2105 Philadelphia Pike, Claymont, DE (Super Fresh)
- 863 East Baltimore Pike, Kennett Square, PA (Super Fresh)
- 1851 South Columbus Boulevard, Philadelphia, PA (Super Fresh)
- 2 Westbury Avenue, Carle Place, NY (Super Fresh)
- 3620 Long Beach Road, Oceanside, NY (Super Fresh)
- 1510 Old Country Road, Riverhead, NY (Super Fresh)
Stores Slated To Be Sold to Acme:
- 160 W. Putnam Avenue, Greenwich, CT (A&P)
- 288 Elm Street, New Canaan, CT (A&P)
- 1261 East Putnam AvenueRiverside, CT (A&P)
- 1201 High Ridge Rodd, Stamford, CT (A&P)
- 45 Demercurio Drive, Allendale, NJ (A&P)
- 152 Route 94, Blairstown, NJ (A&P)
- 1060 Raritan Road, Clark, NJ (A&P)
- 123 East Main Street, Denville, NJ (A&P)
- 2160 Lemoine Avenue, Fort Lee, NJ (A&P)
- 614-632 Clinton Street, Hoboken, NJ (A&P)
- 5734 Berkshire Valley Road, Jefferson Township, NJ (A&P)
- 125 18th Street, Jersey City, NJ (A&P)
- 801 Kenilworth Boulevard, Kenilworth, NJ (A&P)
- 507 Prospect Street, Little Silver, NJ (A&P)
- 125 Franklin Turkpike, Mahwah, NJ (A&P)
- 136 Lake Avenue, Midland Park , NJ (A&P)
- 510 Valley Road, Montclair, NJ (A&P)
- 1260 Springfield Avenue, New Providence, NJ (A&P)
- 455 Route 23, North Sussex, NJ (A&P)
- 3500 Route 9, Old Bridge, NJ (A&P)
- 199 Kinderkamack Road, Park Ridge, NJ (A&P)
- 75 Mayhill Sreet., Saddle Brook, NJ (A&P)
- 5 Ortley Plaza, Seaside Heights/Ortley, NJ (A&P)
- 907 Oak Tree Road, South Plainfield, NJ (A&P)
- 990 Shrewsbury Avenue, Tinton Falls, NJ (A&P)
- 530 Route 515, Vernon, NJ (A&P)
- 2007 Route 35, Wall Twp., NJ (A&P)
- 177 Washington Valley Road, Warrenville, NJ (A&P)
- 19-21 Avenue at Port Imperial, West New York, NJ (A&P)
- 500 Chestnut Ridge Road, Woodcliff Lake, NJ (A&P)
- 422 Old Post Road, Bedford, NY (A&P)
- 1511 N Route 22, Brewster, NY (A&P)
- 1886Pleasantville Road, Briarcliff Manor, NY (A&P)
- 12 Cedar Street, Bronxville, NY (A&P)
- 2005 Albany Post Road, Croton-on-Hudson, NY (A&P)
- 777 White Plains Road, Eastchester, NY (A&P)
- 100 Route 22, Golden Bridge, NY (A&P)
- 103 Knollwood Road, Greenburgh, NY (A&P)
- 829 Route 82, Hopewell Junction, NY (A&P)
- 272 Route 6, Mahopac, NY (A&P)
- 230 Saw Mill River Road, Millwood, NY (A&P)
- 3121 East Main Street, Mohegan Lake, NY (A&P)
- 23 Quaker Ridge Road, New Rochelle, NY (A&P)
- 13 North Avenue, Pleasant Valley, NY (A&P)
- 261 South Ridge Street, Rye Brook, NY (A&P)
- 1366 E. Main Street, Shrub Oak, NY (A&P)
- 60 Columbus Avenue, Thornwood, NY (A&P)
- 1233 Nepperhahn Avenue, Yonkers, NY (A&P)
- 660 McLean Avenue, Yonkers, NY (A&P)
- 100 Triangle Square, Yorktown Heights, NY (A&P)
- 4635 Robert Kirkwood Hwy., Wilmington, DE (Pathmark)
- 100 College Square, Newark, DE (Pathmark)
- 80 New Bridge Road, Bergenfield, NJ (Pathmark)
- 481 River Road, Edgewater, NJ (Pathmark)
- 58 Broadway, Elmwood Park, NJ (Pathmark)
- 321 Route 440, Jersey City, NJ (Pathmark)
- 281-295 Ferry St,. Newark, NJ (Pathmark)
- 5100 Wellington Avenue, Ventnor, NJ (Pathmark)
- 4100 Park Avenue, Weehawken, NJ (Pathmark)
- 643 Conchester Highway, Boothwyn, PA (Pathmark)
- 2101-41 Cottman Avenue, Philadelphia, PA (Pathmark)
- 7700 Crittenden Avenue, Philadelphia, PA (Pathmark)
- 401 New London Road, Newark, DE (Super Fresh)
- 18578 Coastal Hwy., Rehoboth Beach, DE (Super Fresh)
- 1812 Marsh, Wilmington, DE (Super Fresh)
- 9507 Coastal Hwy, Ocean City, MD (Super Fresh)
- 609 E. Bay Avenue, Manahawkin, NJ (Super Fresh)
- 2400 Delaware Avenue, NorthWildwood, NJ (Super Fresh)
- 100 West Avenue, Ocean City, NJ (Super Fresh)
- 1025 Youngsford Road, Gladwyne, PA (Super Fresh)
- 1305 West Chester Pike, Havertown, PA (Super Fresh)
- 1001 South Street, Philadelphia, PA (Super Fresh)
- 180 West Girard Avenue, Philadelphia, PA (Super Fresh)
- 309 S. Fifth, Philadelphia, PA (Super Fresh)
- 800 2nd Street, Richboro, PA (Super Fresh)
- 250 E. Lancaster Avenue, Wynnewood,, PA (Super Fresh)
Stores Slated To Be Sold to Stop & Shop:
- 400 Demarest Avenue, Closter, NJ (A&P)
- 195 North Bedford Road, Mount Kisco, NY (A&P)
- 25 Kinnelon Road, Kinnelon, NJ (Pathmark)
- 407 Valley Street, South Orange, NJ (Pathmark)
- 1720 Eastchester Road, Bronx, NY (Pathmark)
- 2136 Bartow AvenueBronx, NY (Pathmark)
- 961East 174th Street, Bronx, NY (Pathmark)
- 625 Atlantic Avenue, Brooklyn, NY (Pathmark)
- 2965 Cropsey Avenue, Brooklyn, NY (Pathmark)
- 460 Franklin Avenue, Franklin Square, NY (Pathmark)
- 130 Wheatley Plaza, Greenvale, NY (Pathmark)
- 134-40 Springfield Blvd., Jamaica, NY (Pathmark)
- 92-10 Atlantic Avenue, Ozone Park, NY (Pathmark)
- 4055 Merrick Road, Seaford, NY (Pathmark)
- 1351 Forest Avenue, Staten Island, NY (Pathmark)
- 31-06 Farrington Street, Whitestone, NY (Pathmark)
- 905 Atlantic Avenue, Baldwin, NY (Waldbaums)
- 213-15 26th Avenue, Bay Terrace, NY (Waldbaums)
- 112-15 Beach Channel Drive, Bell Harbor, NY (Waldbaums)
- 67 Newtown Lane, Easthampton, NY (Waldbaums)
- 156-01 Cross Bay Blvd., Howard Beach, NY (Waldbaums)
- 60 Wall Street, Huntington, NY (Waldbaums)
- 85 East Park Avenue, Long Beach, NY (Waldbaums)
- 702 Hicksville Road, Massapequa, NY (Waldbaums)
- 167 Main St, Jagger Lane, Southampton, NY (Waldbaums)
Stores Slated To Be Sold to Key Foods:
- 5661 Riverdale Avenue, Bronx, NY (A&P)
- 355 Halstead Avenue, Harrison, NY (A&P)
- 289 Bergen Boulevard, Fairview, NJ (Food Basics)
- 937 Lincoln Avenue, Glen Rock, NJ (Food Basics)
- 465 Getty Avenue, Patterson, NJ (Food Basics)
- 2185 Coyle Street, Brooklyn, NY (Food Basics)
- 10 Union Sq. 14th & Park, New York, NY (Food Emporium)
- 1525 Albany Avenue, Brooklyn, NY (Pathmark)
- 410 West 207th Street, New York, NY (Pathmark)
- 1050 Willis Avenue, Albertson, NY (Waldbaums)
- 35-09 Francis Lewis Blvd., Bayside, NY (Waldbaums)
- 81-21 North Utrecht Avenue, Brooklyn, NY (Waldbaums)
- 196-35 Horace Harding Expressway, Flushing, NY (Waldbaums)
- ParkPlaza, Glen Head, NY (Waldbaums)
- 259-01 Union Tpk., Glen Oaks, NY (Waldbaums)
- 82-35 153rd Avenue, Howard Beach, NY (Waldbaums)
- 75-55 31st Avenue, Jackson Heights, NY (Waldbaums)
- 375 Tompkins Avenue, Rosebank, NY (Waldbaums)
- 2424 Flatbush Avenue, SouthFlatbush, NY (Waldbaums)