WHITE PLAINS, N.Y. — Retailers Albertsons LLC and Family Fare last week filed limited objections to A&P's request to reject leases at stores they have subleased, fearing their investments in those properties could be lost in the transfer.
Boise, Idaho-based Albertsons — separate from the Supervalu-owned chain of the same name — in papers filed in U.S. Bankruptcy Court here said it was concerned that it could miss out on the value of improvements made to a store in Mandeville, La., a former Sav-A-Center subleased from A&P. Albertsons was paying monthly rent of $25,000 to A&P, while A&P paid nearly twice that much to the master landlord for the space, in a lease dating to 2020.
Family Fare, a division of Grand Rapids, Mich.-based Spartan Stores, said it was objecting out of caution that any order approving the rejection preserve Family Fare's right to demand a “non-disturbance” agreement for a store it subleased in Fenton, Mich.
A&P is operating in Chapter 11 bankruptcy and has asked the court for approval to reject leases at 32 former stores it has subleased to other tenants.