UPDATE: Stop & Shop announced in a news release it would be acquiring 25 A&P stores in Greater New York at $146 million per an agreement. It's not a done deal yet, as it's subject to court approval in A&P's bankruptcy filing, not to mention potential other bids and regulatory approval.
Dive Brief:
- For the second time in under five years, The Great Atlantic & Pacific Tea Co., otherwise known as A&P, has filed for Chapter 11 bankruptcy.
- "Acme Markets Inc., Stop & Shop Supermarket Co. and Key Food Stores Co-operative Inc. are proposed as lead bidders for 120 of the grocery chain’s stores for an aggregate purchase price of almost $600 million, court papers show," reports The Wall Street Journal. "The offers will be tested at a bankruptcy auction."
- The chain has approximately 28,500 employees, with about 12,500 employees offered buyouts.
Dive Insight:
Competition in grocery hasn't been easy, with Wal-Mart and Target gaming up their food departments, not to mention Whole Foods and Fairway picking up consumers looking for healthy options.
A&P has stores (with different banners) in Connecticut, New York, New Jersey, Pennsylvania, Delaware, and Maryland.