A&P to Sell Interests in Some Non-core Stores
The Great Atlantic & Pacific Tea Co. Inc. (A&P) has revealed that it has contracted to sell its real estate interests in what the company described as “a few non-core store locations.” According to Montvale, N.J.-based A&P, “The pending deals are a combination of leasehold sales and sale-leaseback transactions that are expected to generate proceeds for the company in excess of $130 million.”
“This opportunity to unlock substantial real estate value from some of our owned and leased properties will provide additional liquidity as we continue to execute on our strategic initiatives and invest in our stores for growth,” said A&P president and CEO Sam Martin.
Since filing for Chapter 11 bankruptcy in December 2010, from which it emerged in March 2012, the Northeast regional grocer has struggled to regain its financial footing, most recently closing three underperforming Super Fresh stores in the Philadelphia area, and indicating interest in selling its upscale The Food Emporium chain.
A&P operates more than 300 stores in six states under the A&P, Best Cellars, Food Basics, The Food Emporium, Pathmark, Superfresh and Waldbaum’s banners.