A&P sells 95 of its stores for $370M
By Evan Fallor
Foto in W Final by Evan Fallor
CAP:
HED:Â A&P sells 95 of its stores for $370M
The Great Atlantic & Pacific Tea, Co., the once-national supermarket chain that filed for Chapter 11 bankruptcy in July, will receive $370 million for the sale of 95 of its A&P banner stores, according to documents filed in U.S. Bankruptcy Court in White Plains court on Sept. 21.
Judge Robert D. Drain on Sept. 21 approved the sale of ____ to competitors Stop & Shop and Acme Markets, Inc., a Pennsylvania-based subsidiary of Albertsons Cos.
Acme is purchasing 71Â stores for $243 million,
The cash purchase price was originally $256 million, but that was reduced by nearly $13 million this month. Ownership of the stores is expected to be transferred by December.
Originally included in Acme’s August bid were A&P locations in Yorktown, Thornwood, Mohegan Lake, Croton-on-Hudson, Brewster, Yonkers, Goldens Bridge, Bronxville, Mahopac, Millwood, Rye Brook, Greenwich, Briarcliff Manor, Eastchester, Shrub Oak and New Rochelle as well as Fairfield County stores in Greenwich, Stamford and New Canaan.
A freezer that has been broken for nearly a month at the A&P store at 103 Knollwood Rd. in Greenburgh is expected to cost the store $55,000 to repair, according to a store representative. A store representative said parts for the freezer were delivered on Wednesday and it was expected to be fixed “soon.” She added she did not have an estimate for the store”™s closing.
Auctions for stores are scheduled to take place Oct. 1 and Oct. 2. A sale hearing will be held Oct. 7.
Acme Markets operates 107 stores in New Jersey, Pennsylvania, Delaware and Maryland. Key Food, founded in Brooklyn in 1937, has more than 180 independently owned stores throughout New York, New Jersey and Pennsylvania, including a Pleasantville location.
Stop & Shop said on July 21 it had reached a $146 million agreement to acquired 25 A&P-owned grocery stores in New York and New Jersey.
A&P announced in July it would be selling off its 296 stores.