A&P unable to sell 100 stores, gets $1.75M for The Food Emporium
A&P unable to sell 100 stores, gets $1.75M for The Food Emporium
A&P, which has been closing and selling off stores since it filed for Chapter 11 bankruptcy protection on July 19, will shutter its 100 unsold stores on Thanksgiving. According to the New York Post, unfavorable locations and bad leases made the stores unmarketable.
In August the company sent layoff notices to 22,000 employees in New York and New Jersey, letting them know that they could be out of work by Thanksgiving. Since that time the company sold approximately 170 of the 296 stores in operation as of mid-July, cutting job losses, though not eliminated them.
Late in October Key Food announced that a 23-store acquisition would spare 1,800 jobs, and the September acquisitions of 70 stores by ACME and 24 by Stop & Shop were expected to save nearly 11,000 jobs.
Additional A&P employees could benefit from the fact that the stores were tremendously understaffed, according to John T. Niccollai, president of a union representing many of the A&P employees. This will afford additional staffing opportunities at newly sold and converted locations.
“Your union is pleased to report that the transition of A&P Stores to ACME, Stop & Shop and Key Foods is proceeding, for the most part, according to schedule,” Niccollai said in a notice to members. "Right now, one of the biggest problems that we have is also the best type of problem; namely, getting additional workers into the ACME stores purchased in order to have adequate staffing in those stores.
"ACME recognizes that in order to grow the business, additional full-time and part-time workers need to be employed,” he continued.
According to the New York Post, Stop & Shop is increasing staff size at the acquired stores by approximately 10 percent.
In other news, A&P accepted a stalking horse offer of $1.75 million from Key Food Stores to acquire The Food Emporium banner and related brands. The acquired assets include The Food Emporium banner, trademarks, domain names, e-commerce business, and fully developed mobile application. The proposed bid deadline for higher and better offers is Nov. 30 at 5 p.m.
