A&P secures approval to sell company store to back-up bidder

By Mark Reccek

Bethlehem, Pa., Nov. 20 – The Great Atlantic & Pacific Tea Co., Inc. received court approval to sell one of its company stores to back-up bidder Food Bazaar for $4.6 million plus inventory, according to an order filed Friday with the U.S. Bankruptcy Court for the Southern District of New York.

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

According to a previous motion, the company said it has “no faith that Lee & Associates will ever close on its obligations to purchase the stores.”

Food Bazaar said it would waive the break-up fee for the Flatlands store.

The sale is expected to close on Nov. 30.

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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