A&P seeks to sell company store to back-up bidder for $4.6 million

By Mark Reccek

Bethlehem, Pa., Nov. 18 – The Great Atlantic & Pacific Tea Co., Inc. sought court authorization to sell one of its company stores to back-up bidder Food Bazaar for $4.6 million plus inventory, according to a motion filed Tuesday with the U.S. Bankruptcy Court for the Southern District of New York.

Initially, Lee & Associates was declared the successful bidder for $5 million plus inventory. However, Lee & Associates stated it does not intend to proceed with the purchase of the Brooklyn, N.Y., or North Bergen, N.J., stores.

According to the motion, “the debtors have no faith that Lee & Associates will ever close on its obligations to purchase the stores. Indeed, Lee & Associates does not even contend that it will proceed with the purchase of the North Bergen store. The debtors are at a stage in these Chapter 11 cases where they require certainty regarding the sales of the Flatlands store.”

Food Bazaar said it will waive the break-up fee for the Flatlands store, the motion indicated.

The sale is expected to close on Nov. 30.

A hearing on the motion is scheduled for Nov. 19.

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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