Tops Markets LLC has filed a plan of reorganization and a related disclosure statement with the U.S. Bankruptcy Court for the Southern District of New York. The plan incorporates the company’s court-approved agreements with its unions and is supported by certain of the company’s senior secured lenders that hold more than 87 percent of its senior secured notes due in 2022.
“The filing of our plan moves Tops another step closer to a successful completion of our financial restructuring,” noted Frank Curci, the grocer’s CEO. “We are pleased to submit a plan that will establish a sustainable capital structure and provide the financial flexibility to create an even more exceptional shopping experience for our customers and emerge from this process as a stronger competitor.”
Added Curci: “We thank our employees for maintaining our high quality of customer service and dedication to Tops, as well as our loyal customers, suppliers and other stakeholders for their support as we progress through this process.”
A hearing to consider approval of the disclosure statement is slated for Sept. 27. Following its approval, Tops intends to seek confirmation of the plan on Nov. 8.
Weil, Gotshal & Manges LLP is serving as legal counsel to Tops, Evercore is serving as Investment Banker and FTI Consulting Inc. is serving as restructuring adviser.
The filing comes on the heels of Tops’ report that it was “making significant progress” in its court-supervised restructuring process, which now includes the closure of 10 underperforming stores by November as well as court approval of its final agreement with the United Food and Commercial Workers union regarding a dispute over pension payments.
Williamsville, N.Y.-based Tops operates 169 supermarkets, with five additional by franchisees under the Tops banner, employing more than14,000 associates in upstate New York, northern Pennsylvania and Vermont. The company is No. 28 on Progressive Grocer’s 2018 Super 50 list of the top grocers in the United States.