Grocery store owner A&P announced on Monday it has filed for Chapter 11 bankruptcy and plans to sell off as many stores as possible. This is the second bankruptcy in five years for the beleaguered grocer.
A&P’s roots in the grocery business stretch all the way back to its founding in 1859. The firm claims to have launched the first U.S. supermarket in 1936, a giant 28,125-square-foot grocery store in Braddock, Pa. A few years after the Second World War, A&P dominated the grocery business in America with more than 16,000 locations across the country.
German Tengelmann Group bought A&P in a restructuring in 1979, but the business has been heading steadily downhill for some time, as a series of strategic blunders, industry changes and financial problems led to the double bankruptcy.
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A&P currently operates close to 300 grocery stores in Connecticut, New York, New Jersey, Pennsylvania, Delaware and Maryland under a variety of names, including PathMark and Waldbaums.
Statement from A&P
A&P CEO Paul Hertz called the bankruptcy and store closures the right decision on Monday, with the goal to “preserve as many jobs as possible” and “maximize value for all stakeholders.”
“While the decision to close some stores is always difficult, these actions will enable the company to refocus its efforts to ensure the vast ma