Sources Speculate A&P Could Declare Bankruptcy as Soon as this Week
MONTVALE, NJ - The corporate parent of the A&P, Pathmark, Waldbaum’s, and Food Emporium grocery chains is set to file for Chapter 11 as soon as this week, sources are reporting.
According to the New York Post, A&P’s filing is expected to come in the form of a “prepackaged” bankruptcy, meaning it would divide up and sell the company’s most profitable locations.
Yesterday, an A&P spokesperson repeated statements given to media in recent weeks about a potential bankruptcy at the company, saying, “No decision has been made regarding a particular outcome, and it would be inaccurate and irresponsible to suggest otherwise. The company is committed to continuing to serve its customers and communities as it always has and intends to keep its stores fully staffed.”
A&P has reportedly already taken steps towards a bankruptcy, hiring Evercore Partners, an investment bank that specializes in selling assets, sources told The Post. This bankruptcy would come on the heels of A&P’s 2007 acquisition by Pathmark, a deal that left A&P with a considerable amount of debt.
Sources cited Mid-Atlantic-based ACME Markets, owned by parent company Albertson’s and Safeway, as a potential buyer for nearly 80 of A&P’s 300 or so locations, according to the Post. The same sources also offered Kroger and Ahold as potential buyers.
