A&P Might Be for Sale

The Wall Street Journal reports that The Great Atlantic & Pacific Tea Co. (Montvale, N.J.) is for sale.

The Journal saw a memo from chairman Gregory Mays to store managers, laying out a number of options for the company to fund its growth – the most likely being a sale of the company.

The 154-year-old grocery operator, once the largest retailer in the U.S., emerged from bankruptcy last year and is in need of operating capital.

“This is about options to grow the business, not about being in distress,” an A&P spokesman told The Journal. “It's a desire for capital, not a need for capital.”

The speculation for possible buyers includes The Kroger Co. (Cincinnati); Ahold NV (Amsterdam); and the buyout firm Cerberus Capital Management LP (New York).

A&P, partly owned by Ron Burkle’s holding company, Yucaipa Cos. (Los Angeles) had about 400 supermarkets before going in to bankruptcy in December 2010. It emerged in March 2012 after securing $490 million in debt and equity financing, and shuttering dozens of its stores, which operate under names including Food Emporium, Pathmark, and Super Fresh, as well as A&P. It’s now down to 320 stores.