The Northern Westchester Examiner

Future of Five Local A&P Supermarkets Uncertain

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The future of five A&P supermarkets in northern Westchester is uncertain after the corporate company that owns 296 stores filed for bankruptcy protection last week.

Officials from the Great Atlantic & Pacific Tea Company, Inc. announced it would close 25 stores in the near future due to “lack of interest and significant ongoing store operating losses.” Asset purchase agreements with approximately 120 stores were also executed.

“After careful consideration of all alternatives, we have concluded that a sale process implemented through Chapter 11 is the best way for A&P to preserve as many jobs as possible, and maximize value for all stakeholders,” said Paul Hertz, president and chief executive officer of A&P. “While the decision to close some stores is always difficult, these actions will enable the company to refocus its efforts to ensure the vast majority of A&P stores continue operating under new owners as a result of the court supervised process.”

Locally, ACME Markets, which currently operates 107 stores across New Jersey, Pennsylvania, Delaware and Maryland, has submitted bids to acquire the A&P supermarkets at the Triangle Shopping Center in Yorktown, the Cortlandt Town Center in Mohegan Lake, in Shrub Oak and on Route 9A in Croton-on-Hudson. So, far there have been no bids placed on the A&P on Welcher Avenue in Peekskill.

Overall, ACME announced it had entered into agreements to acquire 76 A&P stories in New York, New Jersey, Connecticut, Pennsylvania, Delaware and Maryland under the A&P, Superfresh and Pathmark banners. The offers are subject to legal and bankruptcy court approval, including the potential for higher bids to be submitted and anti-trust approval.

A&P has asked the federal court for an order requiring other interested parties to submit bids by September 11, 2015, with an expectation that court approval for the sale of the stores be received by October 15, 2015.

The court has also granted A&P immediate access to $50 to $100 million debtor-in-possession financing that will enable A&P to continue operating its stores and pay its suppliers, vendors, employees and others.

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