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As part of the agreement, A&P will permanently shutter 25 stores, and sell off approximately 120 more for approximately $600 million, store officials said. No stores in Fairfield county are slated for closure.
“After careful consideration of all alternatives, we have concluded that a sale process implemented through chapter 11 is the best way for A&P to preserve as many jobs as possible, and maximize value for all stakeholders,” Paul Hertz, President and Chief Executive Officer of A&P said in a statement. “The interest from other strategic operators has been robust during the Company’s sales process to date, and we have every expectation that will continue in chapter 11."
A&P currently operates 296 stores under the brand names A&P, Best Cellars, Food Basics, The Food Emporium, Pathmark, Superfresh and Waldbaum's.
In addition to filing for bankruptcy, the grocery chain will enter into a $100 million debtor-inpossession (DIP) financing agreement with Fortress Investment Group. The agreement will allow the stores to continue day-to-day operations. It also named Christopher McGarry Chief Restructuring Officer, according to the statement.
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