According to the Wall Street Journal, A&P stores which have operations in New Jersey will be filing for a second time for Chapter 11 Bankruptcy protection. A&P owns brands including SuperFresh, Pathmark, and Food Basics. The company prides itself on being the first supermarket chain in the country, and, according to U.S.A. Today, A&P claims to have opened the first large supermarket store in the U.S. Recently corporate bankruptcies have not been taking place as often due to an improved economy, but A&P has faced sharp competition.
Chapter 11 Bankruptcy is ideal for businesses and partnerships who wish to continue to remain in operation as the bankruptcy proceeds. During Chapter 11 Bankruptcy proceedings, a company can alter contractual obligations, seek out more favorable loans, or sell stores in order to become profitable and keep the business afloat. Chapter 11 Bankruptcy offers the benefit of allowing companies to keep people employed even as the bankruptcy is handled in court. Businesses, individuals, and partnerships who choose to file Chapter 11 Bankruptcy often seek the assistance of a Chapter 11 Bankruptcy attorney like Stuart M. Nachbar Esq.
A&P has bidders for 120 of its 296 stores, and intends to seek buyers for its other stores. A&P has struggled to stay afloat in a highly competitive market that includes Wall-Mart and Dollar General which have begun to sell grocery goods. Whole Foods, on the other hand, has also eaten into A&P’s profit margins. The hope is that by selling the stores, A&P will able to protect as many jobs as possible.
Fortress Investment Group, L.L.C. plans to furnish A&P with $100 million in bankruptcy financing.
A&P’s previous Chapter 11 Bankruptcy […]