WHITE PLAINS, N.Y. — A group of direct-store vendors to A&P have asked U.S. Bankruptcy Court here for permission to form an official committee to represent their interests in the retailer’s bankruptcy proceedings.
The vendors — Frito-Lay, Kraft Foods, PepsiCo/Frito, Nestlé USA, Bimbo Bakeries USA, Kellogg North America, Wise Foods, Dr. Pepper Snapple Group and Campbell Soup — argued in their petition that they had “mutual interests that are clearly distinct from those of the unsecured noteholders, pension funds and landlords dominating the official committee of unsecured creditors.” The companies argued that because they face “very significant exposure” in the case and have extended credit to A&P even after its bankruptcy filing without “critical creditor protection” or executory contracts.
An official committee would have the right to vote on any plan of reorganization filed by A&P.
Separately last week, A&P filed a monthly operating report detailing a $27.4 million loss on $602.6 million in sales during the four weeks that ended Jan. 29. The loss included a $28 million deficit from continuing operations, offset by a small profit from discontinued operations, according to the filing. Gross profit margins were 30.4%.