MONTVALE, NEW JERSEY - Great Atlantic & Pacific Tea Co. (A&P) could file for its second bankruptcy in two years as soon as next month.
“[A&P is] open for business as usual and will remain so throughout the strategic review process,” Hugh Burns, Spokesman for Montvale, New Jersey-based A&P at Sard Verbinnen & Co, told Bloomberg in an email. “The company is committed to continuing to serve its customers and communities as it always has and intends to keep its stores fully staffed.”
People close to the situation said in the report that a filing for bankruptcy could happen next month as one of the current financial options for what was once the nation’s largest grocer. The sources told Bloomberg they would like to remain anonymous, as the company’s current discussions on the matter are not yet public.
“No decision has been made regarding a particular outcome, and it would be inaccurate and irresponsible to suggest otherwise,” Burns stated in his email.
As we previously reported, the company had recently announced it was auctioning nearly half the chain, and had not received a viable offer for the entire chain when that was put up for sale in 2013.
The company’s financial hardships reportedly continue, with two loans totaling $270 million and a $300 million revolving line of credit that matures in September of 2019, according to data compiled by Bloomberg.
Considering that data also included court documents listing that A&P acquired a $420 million junior-ranking debt upon exiting its first bankruptcy, it is understandable that the company would treat the decision with care before filing for a second time.
