A&P wins approval of bid procedures for $1.75 million IP asset sale

By Caroline Salls

Pittsburgh, Nov. 17 – The Great Atlantic & Pacific Tea Co., Inc. (A&P) received court approval of the bid procedures for the proposed $1.75 million sale of its Food Emporium banner, trademarks, domain names, e-commerce business and mobile application to Key Food Stores Co-operative, Inc., according to an order filed Monday with the U.S. Bankruptcy Court for the Southern District of New York.

Key Food will be given a non-exclusive license to use the Food Emporium trademarks until Dec. 31, which will be automatically extended through Jan. 15 if Key Food is selected as the back-up bidder, the motion indicated.

Also, Key Food will be paid a break-up fee equal to 3% of the cash purchase price plus up to $25,000 of actual expenses if it is not ultimately the high bidder for the assets.

The deadline for competing bids is 5 p.m. ET on Nov. 30. The auction is scheduled for Dec. 2, if necessary.

If no competing bids are received, but objections to the stalking horse bid are received, the sale hearing will be held on Dec. 2. If the auction is held, the sale hearing will be held on Dec. 10.

According to the motion, the sale is expected to close no later than Dec. 31.

A&P, a Montvale, N.J.-based operator of supermarkets, filed for bankruptcy on July 19. The Chapter 11 case number is 15-23007.

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