Friday, June 10, 2011

More hurdles in the sale of Mid-Atlantic Super Fresh stores

Ten days ago I wrote about one landlord's objection to A&P's sale of a Super Fresh store to Mrs. Green's Natural Market on the basis that it could not be sure the new tenant could meet the obligations of the lease. Since that time, more objections have been filed.

Another landlord has filed a similar objection regarding Mrs. Green's and the existing lease obligations, and a third landlord's objection states that A&P was responsible for property improvements.

Not surprisingly, unions have their concerns as well. One union that represents employees at some of the stores has argued that the sale of the 12 stores shouldn't be allowed until it makes sure its succession rights are preserved. Another union is objecting to a footnote it says can be interpreted to mean A&P can reject the contract if an agreement with the new operator isn't reached.

The CEO for Natural Market Restaurants, the Toronto-based retail group that includes Mrs. Green's Management Co., said yesterday the company's first priority is to meet with unions and landlords. In response to concerns about the financial stability of his company, he said cash flow has grown 58% in the past 12 months.

* Sources include Supermarket News.

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