A&P on Friday said it has entered into an agreement with Bunzl Distribution, the leading North American nonperishable goods supply chain specialist.
Under the deal, Bunzl will serve as the company’s primary distributor for store supplies and consumables.
The announcement comes days after bag supplier Imperial Bag filed suit against A&P in New York Supreme Court in Westchester, saying the retailer had failed to pay off a debt of $3.7 million. A&P told SN it disputed that charge and planned to countersue the supplier.
“Imperial Bag attempted to unilaterally change the terms of its contract, and when A&P refused they knowingly breached their agreement, forcing A&P to make other arrangements with an alternative supplier,” a spokeswoman told SN. “We will be filing a counterclaim against Imperial Bag in due course for any damages caused by their breach of contract."
“Bunzl has the ability to source more effectively on our company’s behalf because of their greater purchasing power, reliability and quick and effective turnaround,” said Nirup Krishnamurthy, chief strategy officer at A&P, said in a statement. “We look forward to continuing this relationship.”
Bunzl Distribution is the leading supplier of disposable paper and plastic packaging supplies to the retail grocery industry, including self-distributing chains and wholesalers. The company offers more than 60,000 items including, plastic grocery bags, bakery boxes and deli trays.
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