I remember only seeing one A&P store in the South. This was 30 or 40 years ago when the Great Atlantic & Pacific Tea Company, more widely known as A&P, who helped pioneer the modern day supermarket, was dominating the industry. Most of their locations now remain in New York. Talk of a bankruptcy filing has been going on for months; however the New York Post reported today that the filing may come as soon as the end of this week. This would be the second bankruptcy filing for this company in five years. The previous bankruptcy case was a chapter 11, or business reorganization, filed in 2010. The company, which now also operates under the names of Pathmark and Food Emporium, emerged from this bankruptcy in 2012 and became a privately held company. However, they have continued to close stores and lay off employees. It seems that the 156 year old company can’t keep fighting against the big box superstore chains and upscale, trendy markets.
The Times further reports that, if A&P proceeds with the bankruptcy filing, it will most likely be a “prepackaged” filing with plans to divide the remaining locations to the highest bidders. Some major grocery companies have already shown interest in purchasing portions of the company’s locations. For now, a spokesman for A&P has assured the public that the stores will continue to serve their customers.
The company had a good run after opening its first store in 1859. Sometimes, the struggle is too much for even a corporation and the protection of bankruptcy can help them through tough times in a more dignified, calm, and organized process.
We offer the same assistance for consumers and businesses as well. If you are struggling to pay your creditors and feel you are drowning, please call our office nearest to you and schedule a free consultation to discuss how to handle your debts.
Amy K Tanner is a shareholder in several of the Bond & Botes Law Offices. She holds a Bachelor of Science from Auburn University at Montgomery, and a Juris Doctorate from Thomas Goode Jones School of Law. She focuses primarily on consumer bankruptcy law in the Huntsville and Decatur offices.Read her full bio here.