A & P files second Chapter 11 bankruptcy
Posted on Friday, July 24th, 2015 at 4:28 pm
In an effort to avoid liquidation, the company is attempting to broker deals with three major grocery chains in which 120 of the A&P stores will be purchased. If the deals are successful, over 12,500 employees’ jobs will be preserved in exchange for $600 million. A&P representatives have stated that the company executives are discussing even more sales to help preserve as much as they can.
A&P is a division of Montvale-Para Holdings Inc., owned by Mount Kellett Capital Partners LP. It includes around 300 supermarkets and stores, including Waldbaum’s, The Food Emporium, Best Cellars, and A&P Liquor.
In a statement after filing, A&P CEO Paul Hertz said, “While the decision to close some stores is always difficult, these actions will enable the company to refocus its efforts to ensure the vast majority of A&P stores continue operating under new owners.”
If your business is struggling with debts, bankruptcy may allow you to prevent liquidation and continue operations. To learn more about whether bankruptcy is right for you, contact the team at the Bradford Law Offices, PLLC, in Raleigh by calling (919) 758-8879 today.