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A&P granted authorization to sell assets through store closing sales
By Kali Hays
New York, July 28 – The Great Atlantic & Pacific Tea Co. Inc. (A&P) received approval to conduct store closing sales at 25 locations on July 28 under an interim order from the U.S. Bankruptcy Court for the Southern District of New York.
Store displays and inventory will be included in the sales. Any individual transactions are not to exceed $250,000.
The sales will be carried out in consultation with the company’s creditors’ committee and its debtor-in-possession lender, Fortress Credit Group.
As previously reported, A&P filed for bankruptcy after executing asset purchase agreements covering about 120 stores at a purchase price of roughly $600 million.
Specifically, Acme Markets, Inc. agreed to pay $256 million and other consideration for 76 stores and other assets. If Acme is not the high bidder in its sale, it will receive a 1½% breakup fee and reimbursement of up to $4.5 million of its expenses.
Stop & Shop Supermarket Co., LLC agreed to pay more than $146 million plus other consideration for 25 stores and other assets. If Stop & Shop is not the high bidder, it will receive a 3% breakup fee and an up to $1 million expense reimbursement.
Key Food Stores Co-Operative, Inc. agreed to pay $28 million plus other consideration for 19 stores and other assets. If Key Food is not the high bidder, it will receive a 3% breakup fee and reimbursement of up to $250,000 in expenses.
A final sale hearing is set for Aug. 10.
A&P, a Montvale, N.J.-based operator of supermarkets, filed for bankruptcy on July 19 in the U.S. Bankruptcy Court for the Southern District of New York. The Chapter 11 case number is 15-23007.
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