A&P emerges from Chapter 11
MONTVALE, N.J. — Grocer A&P has emerged from bankruptcy as a privately held company.
As previously announced, Mount Kellett Capital Management, The Yucaipa Cos. and investment funds managed by Goldman Sachs Asset Management, have provided $490 million in debt and equity financing to sponsor A&P’s reorganization plan and complete its balance sheet restructuring. In addition, JP Morgan and Credit Suisse arranged a $645 million exit financing facility.
“In just over one year, we have completed a thorough restructuring of A&P’s cost structure and balance sheet to build a strong foundation for the company’s future,” stated Sam Martin, A&P’s president and CEO. “With the full support of our financial partners, the new A&P is committed to delivering exceptional value and an enhanced in-store experience to all of our customers across our more than 300 neighborhood food and drug stores.”
A&P and its subsidiaries filed for Chapter 11 on Dec. 12, 2010.
As part of the restructuring process, A&P assembled a new management team; adjusted its store footprint around its core markets; negotiated a new supply and logistics agreement with its principal supplier, C&S Wholesale Grocers; and worked with the local unions representing A&P’s associates to modify their collective bargaining agreements. A&P also refurbished stores, eliminated closed store leases and opened a brand new Superfresh store in Philadelphia’s Northern Liberties neighborhood.
“We greatly appreciate the support of our associates, vendors, unions and community leaders throughout the restructuring process, and we especially thank our customers for their loyalty and commitment to shopping at our stores. Going forward, we remain committed to investing in our stores and providing our customers with new products that match their health-and-wellness needs and reflect the diversity of the neighborhoods we serve,” Martin added.