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The Great Atlantic & Pacific Tea Co. has filed for Chapter 11 bankruptcy protection leaving many shoppers wondering if their favorite supermarket is set to close. The 151-year-old company based out of Montvale, New Jersey was once the nation’s largest grocer and has 395 stores throughout the Northeast including A&P, Waldbaum’s, Super Fresh, The Food Emporium, Pathmark and Food Basics.
Read on for details on the A&P bankruptcy…
The A&P bankruptcy comes as no surprise and according to the filing submitted over the weekend at a White Plains, New York bankruptcy court, they listed total debts of over $3.2 billion and assets of only $2.5 billion. Ouch.
The company cites the troubled economy for most of their problems and says that like their competitors, they too struggle with reduced consumer spending, a weak economy and major competition. Non-traditional food retailers like Target and warehouse clubs have made the situation even worse.
According to Market Watch, all 395 stores remain open for business (for now) as the company determines their reorganization plan. New Jersey-based A&P will most likely close some of the stores, attempt to sell a few others and renegotiate rent payments. For now, A&P is using their $800 million in debtor-in-possession financing from J.P Morgan Chase to pay their bills. The company’s stock took a major dive Friday after the news was announced, falling 67 percent.