A&P Files for Chapter 11 Bankruptcy Protection
The Great Atlantic & Pacific Tea Co. (GAP), once the largest grocer in the United States, filed for Chapter 11 bankruptcy protection Sunday.
The company filed for protection in White Plains, N.Y., listing total debts of more than $3.2 billion and assets worth about $2.5 billion, The Associated Press reported.
The 151-year old company operates 395 stores around the Northeast under the brands A&P, Waldbaum's, The Food Emporium, Super Fresh, Pathmark and Food Basics.
In recent years, the grocery chain operator has struggled to deal with a growing debt burden and competition from low-cost retailers.
The company reported revenue of $9.5 billion in 2008, dropping to $8.8 billion in 2009. In its most recent quarter, A&P said revenue was still falling.
A&P said all stores are fully stocked and opened for business.