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Tops readies for Chapter 11 exit

Court gives green light to regional grocer’s reorg plan

Russell Redman

November 9, 2018

2 Min Read
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Tops Markets LLC has gained court approval for its reorganization plan and said it “shortly” expects to come out of Chapter 11 bankruptcy protection.

The Williamsville, N.Y.-based supermarket chain, which operates under the name Tops Friendly Markets, said Thursday that the U.S. Bankruptcy Court for the Southern District of New York has confirmed its restructuring plan, which is slated to be completed soon.

“We are pleased to receive the court’s approval of our plan and are poised to emerge from this process an even stronger and more competitive company,” Tops CEO Frank Curci said in a statement.

Tops filed for Chapter 11 on Feb. 21 and, in court filings, said it expected to exit bankruptcy protection in about six months. At the time of the filing, the company cited assets of about $977 million and liabilities of approximately $1.18 billion as of the end of 2017.

In mid-April, Tops asked for court permission to close underperforming stores. The company noted that “the vast majority” of its then 174 stores “are already sustainable profit centers, showing strong sales numbers” and offering the potential to generate strong cash flow in the coming years. But some stores have “consistently underperformed,” the retailer said. The court gave the go-ahead for the closings in May.

Related:Tops set to debut curbside pickup

A day before filing its reorganization plan in late August, Tops announced that it would shut 10 stores in upstate New York by the end of November, including two in Syracuse, two in Rochester and one each in Fairport, Lyons, Geneva, Fulton, Elmira and Saranac Lake. Tops had said the closings will shore up its finances so the company could invest in improving the shopping experience of its stores and better compete in today’s fast-changing grocery market. The retailer identified the locations to close through a review of its store portfolio.

Tops currently operates 159 supermarkets in New York, northern Pennsylvania and Vermont. It also has five franchisees under the Tops banner.

“Through this process, we have accomplished several key objectives, including significantly reducing our debt, creating a viable cost structure and efficiently optimizing our store portfolio,” Curci stated Thursday. “Importantly, we provided an opportunity for employment to every associate who was interested and impacted by store closings at other nearby stores. Our restructuring will create an even more exceptional shopping experience for our customers and assure that we will continue to serve our communities like no one else can.”

Related:Tops brings Instacart delivery to more stores

Tops has been owned by three separate groups. In 2007, Netherlands-based Royal Ahold sold the chain to Morgan Stanley Private Equity for $310 million. Then in 2013, Tops' management acquired the retailer in a buyout of Morgan Stanley’s stake in the business.

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Tops Friendly Markets

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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