Key Food Co-op acquires Super Fresh name

Earlier this month the Key Food Cooperative reported that it had acquired the Super Fresh brand from A&P and that it is "planning to open several stores under the Super Fresh banner in the near future, the first of which may be as early as this month."

Key Food previously acquired the Food Emporium banner in a bankruptcy auction and is using that name on properties it acquired from A&P in Manhattan.

Last November the Key Food Cooperative completed the purchase of 23 A&P stores, bringing the total number of stores under its management to 212. It is the largest grocer in New York City.

According to the report, the Super Fresh banner was created in Philadelphia in 1982 as part of a deal between organized labor and A&P. A&P filed for bankruptcy and ceased operations last year after 156 years in business.

A&P to put store names up for auction

Now that A&P's bankruptcy proceedings, including the auctions for its remaining stores, are winding down, the company announced that it plans to take bids for its intellectual property, including brand names for its stores and private brands, its slogans and customer data.

Brands up for grabs include A&P, Pathmark, Waldbaum's, Super Fresh, Food Basics and Best Cellars. Bids are due on November 19.

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)

Tesco's Fresh & Easy chain files for bankruptcy protection

After much speculation, Tesco's Fresh & Easy Neighborhood Market has filed for bankruptcy protection, just weeks after it was announced that Yucaipa Cos. would buy most of the chain's stores. The bankruptcy filing lists debts of more than $500 million and assets of $100 - $500 million.

According to Fresh & Easy, the move is "the next step in the restructuring process" and will have no impact on customers. According to reports, Tesco plans to back out of certain leases while in bankruptcy, and then auction off the company's remaining assets. Yucaipa would have the right to bid first for the chain in a court action later this year.

Tesco previously planned to pay Yucaipa $235 million to assume the supermarket chain's liabilities. As part of the agreement, Yucaipa would own and operate about 150 of the stores we well as a distribution facility, and close the remaining 50 stores. The deal included a loan of about $125 million from Tesco to help Yucaipa fund the operations.

There is still speculation by analysts that once Yucaipa owns the chain, it will relaunch the Wild Oats Markets brand, which has been closed since 2007. As reported in the LA Times, a trademark application filed by Wild Oats Marketing surfaced this summer with a Yucaipa office address.

The end may be near for Supervalu, Acme

Yesterday the board of directors for Minneapolis-based Supervalu (Acme, Save-A-Lot) said they are considering the sale of all or parts of the company, and will significantly cut expenses and capital spending.

The announcement came after Supervalu's financial results for its most recent quarter fell below expectations. The company's net earnings of $41 million were down 45% from the same period last year.

According to company leadership, fiscal 2013 capital expenditures would be reduced from previous estimates of $675 million to $450-$500 million, and operating expense cuts of $250 million can be expected over the next two years. In addition, Supervalu has suspended its dividend and replaced its current credit facility with a real estate backed loan.

In a conference call yesterday with analysts, CEO Craig Herkert said the company was not considering bankruptcy, but analysts believe it's a possible scenario considering the difficulty Supervalu will most likely face when trying to find a buyer.

Save-A-Lot, Supervalu's "limited-assortment" brand, is the banner analysts believe would be most attractive to a buyer. Other Supervalu brands include Albertsons, Jewel-Osco, Acme, Shaw's, Cub Foods and Shoppers.

A&P emerges from bankruptcy as private company

In a statement today, A&P said it emerged from bankruptcy as a private company, having completed a court-approved financial restructuring. It had filed for bankruptcy in December 2010. The company said that JPMorgan Chase and Credit Suisse arranged for $645 million in exit financing.

A&P also said that it assembled a new management team, refurbished stores and concentrated them near core markets, negotiated a new agreement with its main supplier and made necessary changes to its collective bargaining contracts with unions.

A&P (The Great Atlantic & Pacific Tea Company) operates under the names A&P, Super Fresh, Pathmark and Food Emporium.

NJ union workers approve plan to help save A&P

Members of 13 New Jersey chapters of the United Food and Commercial Workers International Union voted earlier this week to approve a deal designed to help get their employer, A&P (Super Fresh, Pathmark), out of bankruptcy. The plan, which was approved 7,200 - 1,827, will lower wages by about three percent and decrease vacation time but keep the employee health plan free from any co-pays.

The Great Atlantic & Pacific Tea Company has more than 13,000 employees in New Jersey. It filed for bankruptcy protection last December, and passage of the deal by the unions sets the stage for the company to emerge from bankruptcy (pending court approval) thanks to a $490 million buyout bid by The Yucaipa Companies, a California-based investment firm.

A&P to save $50 million in new deal with C&S

Just six months after citing its agreement with C&S Wholesale Grocers as a significant contributor to its Chapter 11 filing in December, A&P announced that it has entered into a new supply and logistics agreement with the New Hampshire-based supplier. The new contract is expected to take effect once A&P emerges from bankruptcy and will generate savings of up to $50 million per year, according to the grocery company. The agreement is subject to bankruptcy court approval.

In other words, A&P and C&S are on their way to being friends again.

Unions Warn of Potential A&P Strike

Labor unions are worried that A&P may seek bankruptcy court approval to reject labor contracts or lower wages and benefits without bargaining. So, in a message to union members, the union president said they may have no choice but to strike if that should happen.

More details in the following Supermarket News story: Unions Warn of Potential A&P Strike