A&P and its subsidiaries filed voluntary Chapter 11 petitions on Dec. 12, 2010. A&P intends to continue to operate its stores normally during the company’s exit process.
A&P will be able to complete the restructuring of its balance sheet and emerge from Chapter 11 as a private entity in early 2012 due to the agreement with these investors, the company said. The investment will form the basis of A&P’s plan of reorganization, which the company anticipates filing prior to Nov. 14.
“This investment commitment is a very important step in A&P’s financial and operational turnaround,” said Sam Martin, president and chief executive officer. “It positions us for a bright future with solid financial backing from sophisticated investors who know our company and industry well, and who also share our vision for A&P’s future.”
Following the closing of the transaction and the company’s emergence from Chapter 11, A&P’s current board of directors will be dissolved and a new one will be appointed in accordance with the terms of the plan of reorganization.
Founded in 1859, A&P operates 336 stores in seven states under the trade names A&P, Waldbaum's, Pathmark, Best Cellars, The Food Emporium, Super Foodmart, Superfresh and Food Basics.