A&P is looking for a buyer.
Management at the grocery chain, which emerged from Chapter 11 bankruptcy protection, apparently has concluded that the business is in good enough shape to attract the type of money required to pursue its growth goals.
An internal memo, seen by The Wall Street Journal, claims the company could be valued at $1 billion or more in a sale. One retailer named as a possible suitor was Kroger, which does not have a presence in A&P's home market in the New York metro area. Kroger recently agreed on a deal to acquire Harris Teeter.
"Having strengthened the core of our business, we are now focused on the capital required for future growth," said Greg Mays, chairman of A&P, in an e-mailed statement to Bloomberg News. "Our goal is to build on our positive momentum and grow A&P in a way that benefits our customers, associates, suppliers and partners."
If a deal is not made, according to the memo seen by the Journal, A&P is prepared to capitalize its own growth albeit "at a slower pace from internal cash flow."