The Great Atlantic & Pacific Tea Co., based in Montvale, NJ, filed for Chapter
11 bankruptcy protection Dec. 12.
The filing was widely expected and occurred after the company struggled for
years to manage its enormous debt and increased competition from
discount chains. In the filing, the company lists assets of about $2.5 billion
and debt of more than $3.2 billion. The company reported revenue of $9.5
billion in 2008, but that dropped to $8.8 billion in 2009 amid declining sales.
"We have taken this difficult but necessary step to enable A&P to fully
implement our comprehensive financial and operational restructuring," Chief
Executive Officer Sam Martin said in a statement yesterday. “We could not
complete our turnaround without availing ourselves of Chapter 11.”
According to the filing, A&P secured $800 million in debtor-in-possession
financing from JPMorgan Chase & Co., giving it immediate access to a $187
million loan and $200 million in letters of credit, which will allow the company
to continue to operate its 395 stores under the A&P, Waldbaum's, The Food
Emporium, Super Fresh, Pathmark and Food Basics banners around the
The 151-year-old chain, which is the oldest in the nation, was also at one
time the largest, with 15,357 locations nationwide at its peak.