Acme to bid on bankrupt A&P stores; several Pathmarks and Superfresh stores to close immediately

One day after A&P filed for bankruptcy for the second time in five years, Acme announced today that it will bid to acquire 76 A&P, Superfresh and Pathmark stores in Pennsylvania, New Jersey and Delaware.

In a statement by A&P earlier today, the company said it plans to sell 120 stores in total for about $600 million. The food retailer has 296 stores overall, and in its bankruptcy filing it lists assets and liabilities of more than $1 billion each.

Analysts have speculated that Ahold (Giant, Stop & Shop) may bid on certain A&P locations as well.

A report this afternoon by Natalie Kostelni on the Philadelphia Business Journal's website said that A&P has asked a bankruptcy judge "to let it quickly close 25 underperforming stores that have sustained 'significant operating losses.'" A list of stores slated for closure is below.

A story on PhillyVoice.com pointed out that A&P operated more than 15,000 stores early in the 20th century. By 2010, the company was a fraction of its former self and filed for bankruptcy. A couple years later it emerged as a private company after obtaining financing from investors.

Acme is a subsidiary of Albertsons, which acquired Acme in 2013, and the Malvern, PA-based company operates 107 stores.

Stores slated for quick closure:

A&P (2101 Route 35, Holmdel, NJ)
A&P (325 Highway 35 South, Cliffwood, NJ)
Pathmark (1764 Grand Avenue, Baldwin, NY)
Pathmark (115 Belmont Avenue, Belleville, NJ)
Pathmark (450 West Swedesford Road, Berwyn, PA)
Pathmark (2150 Middle Country Road, Centereach, NY)
Pathmark (85 Ackerman Avenue, Clifton, NJ)
Pathmark (895 Paulison Avenue, Clifton, NJ)
Pathmark (50 Racetrack Road & Route 18, East Brunswick, NJ)
Pathmark (561 Route 1, Edison, NJ)
Pathmark (420 McDade Boulevard, Folsom, PA)
Pathmark (651 North Stiles Street, Linden, NJ)
Pathmark (1043 Route 9 North, Old Bridge, NJ)
Pathmark (840 Cottman Avenue, Philadelphia, PA)
Pathmark (85 Franklin Mills Boulevard, Philadelphia, PA)
Pathmark (1256 Indian Head Road, Toms River, NJ)
Pathmark (300 South Best Avenue, Walnutport, PA)
Pathmark (3901 Lancaster Avenue, Wilmington, DE)
Superfresh (1301 Skippack Pike, Center Square, PA)
Superfresh (2105 Philadelphia Pike, Claymont, DE)
Superfresh (863 East Baltimore Pike, Kennett Square, PA)
Superfresh (1851 South Columbus Boulevard, Philadelphia, PA)
Waldbaums (2 Westbury Avenue, Carle Place, NY)
Waldbaums (3620 Long Beach Road, Oceanside, NY)
Waldbaums (1510 Old Country Road, Riverhead, NY)

A&P may put itself up for sale

According to multiple reports, A&P, formally known as the Great Atlantic and Pacific Tea Company, has hired Credit Suisse to help review strategic alternatives that may include selling the company. A&P brands include Pathmark, which recently announced the closing of three stores in New Jersey, as well as Superfresh, Waldbaum's, The Food Emporium and Food Basics.

Bloomberg News reports that A&P may also raise new capital from investors, consider new business partners or refinance the company.

A&P, which emerged from bankruptcy last year, has more than 300 locations. The Wall Street Journal said yesterday that the company's asking price could be as high as $1 billion.

A&P close to a sale of its Food Emporium chain

According to a story in Crain's New York Business, the sale of A&P's 16-store Food Emporium chain in Manhattan is imminent. As of late last month, the investment banking firm Duff & Phelps was soliciting final bids from buyers, including Kings Food Markets, a 24-store chain that operates in New Jersey, Long Island and Connecticut, that wants several of the Food Emporium stores.

Gristedes, which operates approximately 30 stores in Manhattan and surrounding areas, submitted a bid for the entire chain, but it appears A&P is leaning towards a sale to multiple buyers.

The Crain's story also reports that the union representing some of Food Emporium's 1,100 employees is suing A&P to stop a sale to buyers who would not honor its current labor contracts, although such a buyer would only have to honor the contracts if A&P made it a condition of the sale.

A&P, officially known as the Great Atlantic & Pacific Tea Company, also owns Pathmark, Super Fresh, Waldbaum's and Food Basics grocery stores.

A&P to sell Food Emporium's Manhattan stores

The Great Atlantic and Pacific Tea Company (A&P), the parent company of Pathmark and Super Fresh, announced earlier this week it is selling Food Emporium's 16 Manhattan locations. The stores, its leases and the brand name are for sale.

Earlier this year A&P emerged from bankruptcy as a private company, and also with 75 fewer stores than it had pre-bankruptcy. In addition to Pathmark and Super Fresh, the company owns Waldbaum's and Food Basics. Analysts believe the proceeds from the sale of Food Emporium will be invested into the other A&P brands.

A&P to close 14 stores, including one Pathmark in PA

In the past year, A&P has closed about 60 stores as they make plans to emerge from bankruptcy. And on Monday, 14 more closures were announced. The only Pennsylvania store slated to close is the Pathmark in Upper Moreland (Huntingdon Valley). The other stores include the following:

Three NJ Pathmarks (Manahawkin, Kearney and Egg Harbor Township)
Six NY Waldbaums and one NY Pathmark
Two NJ A&Ps (Garfield, Bayonne) and one CT A&P

The company expects to close the stores during its first fiscal quarter, which begins February 26.

A&P scrapping low price project, seeking more time to reorganize

A&P says their effort to introduce everyday low prices at its A&P, Super Fresh and Waldbaums stores didn't resonate with consumers and hurt profits. Therefore, the "Lower Price Project" launched in March 2010 that replaced discounts and coupons by establishing lower everyday prices on 10,000 items, has been scrapped.

A&P has been operating under Chapter 11 bankruptcy protection since December, and earlier this week they asked the bankruptcy court for a second extension of its deadline to submit a reorganization plan to its creditors. The first extension has a December 31 deadline, but the company would like until January 16, 2012 to submit their plan, saying the additional 16 days would assure stability through the holiday season.

In order to increase profitability, A&P is counting on new supply and labor agreements made during their bankruptcy period, but positive results "are taking longer to realize than originally anticipated," according to a company filing. The filing also notes that A&P's turnaround strategy has had a negative impact on their profitability and cash flow from operations.

In the company's first quarter, which ended June 18, 32 store were closed in the fresh and Pathmark divisions, while 25 Super Fresh stores in Maryland and Washington D.C. were closed or sold.

See the Supermarket News story.