A&P takes key step toward completing financial restructuring
MONTVALE, N.J. — Bankrupt grocer A&P has announced that the Locals of the United Food and Commercial Workers International Union have ratified modifications to the collective bargaining agreements with the company — a key step toward completing the company’s financial restructuring.
“This agreement with our labor unions marks a significant milestone in our turnaround efforts,” stated Sam Martin, A&P’s president and CEO. “I want to thank our associates for their steadfast commitment to serving our customers throughout this process. As we position the company to emerge from Chapter 11 early next year with a much stronger financial and operating foundation, we intend to continue making operational and service improvements to further enhance the value and in-store experience we provide to our customers.”
The agreement with A&P’s labor unions is consistent with and contemplated by the previously announced joint financing commitment from The Yucaipa Cos., Mount Kellett and investment funds managed by Goldman Sachs Asset Management. The bankruptcy court granted approval of the investment agreement on Nov. 14, contingent upon successful resolution of the company’s negotiations with its labor unions.
A&P and its subsidiaries filed Chapter 11 in December 2010.