Tops Markets announced this morning that the company is filing for Chapter 11 bankruptcy.
In a statement, the company said that it is pursuing a financial restructuring in order to eliminate a substantial portion of debt from its balance sheet and position Tops for long-term success.
“Tops has built strong market share and our stores continue to distinguish themselves by offering quality products at affordable prices with superior customer service,” Frank Curci, CEO of Tops, said in the statement. “We believe the financing that we received from our noteholders is a vote of confidence in our business. Our operations are strong and we have an outstanding network of stores and a talented team to support them. We are now undertaking a financial restructuring, through which we expect to substantially reduce our debt and achieve long-term financial flexibility. This will enable us to invest further in our stores, create an even more exceptional shopping experience for our customers and compete more effectively in today’s highly competitive and evolving market.”
Tops has received a commitment for a $125 million debtor-in-possession loan from some noteholders and a $140 million debtor-in-possession loan from Bank of America to help it deal with its debt.
Tops stores throughout upstate New York, northern Pennsylvania and Vermont are continuing to serve customers with no impact to day-to-day operations, according to the company, which says it expects operations to continue as normal throughout this financial restructuring process. The Williamsville, N.Y.-based chain operates 178 stores and employs more than 15,000 people.