Grocer A & P files Chapter 11 reorganization (the Arizona Republic)

PORTLAND, Oregon (AP) - the Great Atlantic & Pacific Tea Co., once the largest grocery store in the country, has filed for Chapter 11 bankruptcy protection while he fights with huge debt and competitive low prices peers.The Society of 151-year-old based in Montvale, N.J., operates 395 stores around the Northeast as has & P, Waldbaum, The Food Emporium, Super Fresh, Pathmark and Food Basics grocery banners.The deposit has been widely anticipated. Society - more knows A & P - was bleeding red ink for a period of time. According to the filing submitted late Sunday before the Court of the bankruptcy of White Plains in the State of New York, the listed company active for about 2.5 trillion total more than 3.2 billion debt a. & P, as most grocers, is faced with the economy weakened, reduced spending by consumers and intense competition. The company said the aggressive competition from non-traditional food retailers such as warehouse clubs, discount chains such as Wal-Mart Stores Inc. and dollar stores have aggravated the company problem.The reported revenues $ 9.5 billion in 2008, which fell 8.8 billion in 2009. And while fiscal 2010 is still under way, in its most recent quarter that has & P reported doubled its net loss as revenue continued business said sink.The all its stores are fully stocked and open to the companies and other promotions and customer loyalty programs will be continue.It is also faced with expenses of pension, the weight of "black" stores, where he has ceased to operate, but remains responsible for leasing and contract with C & S Wholesale Grocers Inc., which provides the majority of its inventory, it could not negotiate to lower costs.According deposit A & P has won the 800 million dollars in funding for debtor in possession by J.P. Morgan Chase & co. and will continue to concentrate on his recovery, plan while under bankruptcy protection. Society is reflected in the new management sold 32 stores underperforming since this summer and significantly reduce costs. The grocer said that he not able to finish this process without stock price fell e business more than 67 percent on Friday and the trade was interrupted in the afternoon a. & P is one of the oldest supermarket operators in the country. His first store was in New York and sold tea, coffee and spices. It expanded throughout the country and the 1930s, it was the largest grocer in country.Germany Tengelmann group is largest shareholder of A & P with approximately 42% of its shares. Activist investor Ron Burkle company investment Yucaipa Cos. also holds a large.