Supermarket chain Great Atlantic & Pacific Tea Co., better known as A&P, has filed for Chapter 11 bankruptcy protection as it enters into discussions with some possible buyers. This is the turbulent retailer's second bankruptcy filing in five years.
The company has hired Evercore Partners, an investment bank that specializes in selling assets, Reuters reported.
Those close to the situation reported that A&P is in talks with Acme Markets, parent company of Safeway, Albertsons, Stop & Shop and Key Food Stores Co-operative, to line up buyers for 120 of its 296 stores, thus far. Rumors of another bankruptcy filing and the selling off of stores began last month. In fact, the Montvale, New Jersey-based company has been trying to improve its finances in preparation for a sale since it was taken private, according to unions representing workers at the company's stores.
A&P has recently experienced some difficult financial times as it tries to compete with big-box retailers, on the discount end, and specialty stores on the higher end.
In addition, A&P has received debtor-in-possession financing of $100 million from Fortress Credit Corp. In its heyday, A&P operated more than 15,000 stores and first filed for bankruptcy in 2010. Two years later, the company emerged as private, owned by Goldman Sachs.
-See this Reuters article
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