The Great Atlantic & Pacific Tea Company (aka A&P) filed for Chapter 11 in December 2010. Just under fifteen months later, the supermarket operator has emerged from bankruptcy as a private company. Bu, what does that mean?
"We have completed a thorough restructuring of A&P's cost structure and balance sheet to build a strong foundation for the company's future," said Sam Martin, president and CEO of A&P, in a statement. "With the full support of our financial partners, the new A&P is committed to delivering exceptional value and an enhanced in-store experience to all of our customers."
The partners that Mr. Martin referred to included Ron Burkle's Yucaipa Cos., Mount Kellett Capital Management LP and Goldman Sachs Group. The firms combined to provide $490 million in debt and equity financing for the grocer.
According to A&P, the company took advantage of its time in bankruptcy to put together a new and experienced team of top executives to lead the company. It closed underperforming locations, renovated remaining locations and negotiated a new supply agreement with C&S Wholesale Grocers. It also worked out deals to modify its union contracts.
A&P currently operates 320 stores in six Northeastern and Mid Atlantic states. The company's banners include A&P, Best Cellars, Food Basics, The Food Emporium, Pathmark, SuperFresh and Waldbaum's.