A&P filed for Chapter 11 bankruptcy late Sunday for the second time in five years, according to numerous reports. The chain on Monday announced the sale of 120 stores and the closure of 25 more.
The Montvale, N.J., based chain, which reported assets and liabilities of more than $1 billion each, has hired Evercore Partners, an investment bank that specializes in selling assets, according to Reuters and others.
Reuters also reported that A&P said was in talks with Albertsons-Safeway's Acme Markets, Ahold USA's Shop & Shop Supermarket and Key Food Stores Co-operative to buy its assets.
Speculation over the future of A&P flared again last week amid an article in the New York Post saying A&P would file for bankruptcy protection and dissolve as a result of asset sales as soon as this week. Citing confidential sources, the Post said Albertsons' Acme chain was looking to acquire as many as 80 A&P locations and that Kroger and Ahold are also expected to eye sites.
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A&P has lined up buyers for 120 of its 296 stores with total expected proceeds of about $600 million, the Wall Street Journal reported, citing a knowledgeable source.
The company has put itself and/or parts of the company for sale several times previously — most recently in 2013 — but thus far has failed to make a significant deal.
A&P has received debtor-in-possession financing of $100 million from Fortress Credit Corp, court documents show, according to Reuters.
The chain, which employs about 34,000, first filed for bankruptcy in 2010.
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