A&P Finalizes Sale of 95 Stores for $370 Million; Could Save 11,000 Jobs
MONTVALE, NJ - A&P employees got some welcome good news this week—the retailer has won bankruptcy court approval to sell 95 of its stores for $370 million, potentially preserving more than 10,750 jobs.
U.S. Bankruptcy Judge Robert Drain approved the sale of 71 A&P stores to Acme Markets Inc. for $246 million and 24 stores to Stop & Shop Supermarket Co. for $124 million on Monday in a White Plains court. A&P has been working with the judge on its Chapter 11 bankruptcy protection from creditors since July.
Acme and Stop & Shop expect to reach labor agreements with the union representing workers at those stores, A&P representatives told Newsday, keeping many or most of those workers employed.
Separately, A&P is seeking additional bids for 17 stores that Key Food Stores Co-operative Inc. had originally agreed to take over, court documents from the hearing show, and although the retailer is seeking higher bids for the 17 stores, Key Food has not ended its bid to buy them, a Key Food representative has confirmed.
Locals of the United Food and Commercial Workers International Union, including Mineola-based Local 338, Westbury-based Local 1500 and Mineola-based Local 342, have met with Stop & Shop, Acme Markets, and Key Food regarding their acquisition of A&P's stores.
"Both Stop & Shop and Acme have said that they will hire from the workforce," said Nikki Kateman, Local 338’s Deputy Director of Politics, Communications, and Special Projects. "We have also reached tentative labor agreements with the two companies that protect the workers' wages and benefits."
Other potential buyers have made bids on 39 of the stores Acme Markets sought to purchase and 16 of the stores Stop & Shop wanted to buy, Newsday reports, but Acme and Stop & Shop had the "highest and best offers,” says Stephen Goldstein, the Senior Managing Director of Evercore Group LLC, a financial advisory and investment banking firm, said in court documents filed Friday.
As we reported last week, A&P has extended for a second time the deadline for bid submissions on 177 stores. The deadline was originally set for Monday, Septemeber 11, at 5 pm.
Stores without successful bids are to be auctioned on October 1 and 2. Successful bidders will be announced October 3.
