MONTVALE, N.J. -- A&P here on Sunday filed for Chapter 11 bankruptcy protection, listing debts of more than $1 billion and more than 100,000 creditors.
The filing was made in U.S. Bankruptcy Court in White Plains, N.Y., following several quarters of losses at the retailer, which operates stores under several banners in the Northeast and Mid-Atlantic. A&P cited competition from nontraditional formats such as club stores, supercenters and drug stores as contributing to its recent losses.
In the most recent quarter, A&P posted a loss of $153.7 million, as same-store sales fell 6.6%. A&P said in October that it was negotiating a new lending agreement with its banks and had expected to finalize a deal within weeks, but no such agreement has been announced.
In the bankruptcy filing, the company asked for permission to continue to pay employee wages and to continue certain customer programs, such as refunds and price guarantees. It listed Kirkland & Ellis as its bankruptcy attorney.
