A P Bankruptcy Grocery Chain Files for Bankruptcy

Dec 13, 2010

A P Bankruptcy has been filed by the grocery chain who says it is drained of cash during the sluggish economy.

As of the largest U.S. grocers, Great Atlantic & Pacific Tea Co own about 400 stores with brands like Waldbaum's, Super Fresh and A &P. The company filed Chapter 11 in New York with more than $ 1 billion in assets and the same amount in debt.

A&P had nearly $9 billion in sales in its fiscal year to February 2010, but it has been losing cash at a rate of nearly $5 million a week.

The recession and slow economic recovery claimed the company which says they were squeezed out discounters and high-end competitors.

The company also had approximately $13.4 million of interest payments due on unsecured notes, rising legacy costs and had less than $100 million in cash.

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