Retail News Breaks
A&P emerges from Chapter 11, names CFO
March 14th, 2012
MONTVALE, N.J. – A&P has emerged from bankruptcy protection as a privately held company with a smaller store base and a tighter focus on its core markets, company officials say.
Mount Kellett Capital Management LP, Yucaipa Cos. LLC and investment funds managed by Goldman Sachs Asset Management LP have provided $490 million in debt and equity financing to sponsor A&P's reorganization plan and complete its balance sheet restructuring. In addition, JP Morgan and Credit Suisse have arranged a $645 million exit financing facility.
"In just over one year, 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," A&P president and chief executive officer Sam Martin said. "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 across our more than 300 neighborhood food and drug stores."
A&P exited markets and shuttered stores as part of its restructuring process. It now operates 320 stores in six states under the following trade names: A&P, Best Cellars, Food Basics, The Food Emporium, Pathmark, Superfresh and Waldbaum's.
Other steps taken during the 15 months A&P spent under bankruptcy court protection included assembling a new management team, negotiating a new supply and logistics agreement with its principal supplier, C&S Wholesale Grocers Inc., and working with unions to modify its workers' collective bargaining agreements. A&P also refurbished stores, eliminated closed store leases, and opened a new Superfresh store in Philadelphia's Northern Liberties neighborhood.
The company also announced the promotion of Raymond Silcock to chief financial officer. He succeeds Frederic Brace, who is resigning from his roles as chief restructuring, financial and administrative officer in conjunction with A&P's emergence from Chapter 11. Brace will continue to serve as an advisor to the company.
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