Great Atlantic & Pacific Tea Co. Inc. (Montvale, N.J.) announced its ceo Eric Claus has resigned after the supermarket chain reported a same-store sales decline of 3.8 percent for the second quarter. Revenue dropped to $2.07 billion, down from $2.18 billion. The company also announced a second-quarter net loss of $80.3 million, compared with a loss of $18.1 million a year ago.
Claus became ceo in August 2005. A search is underway for a replacement while Christian Haub, executive chairman and former ceo, has been appointed as interim chief executive. “The company's performance has not met our expectations. Based on these results the company felt a change in leadership was warranted and appropriate,” Haub said during a conference call with analysts.
For the past two years, the company has been reporting losses and has struggled with higher operating costs and pension-related costs, as well as the impact of pricing.
Great Atlantic operates 432 stores under such names as A&P, Waldbaum's, Pathmark, Pathmark Sav-a-Center, Best Cellars, The Food Emporium, Super Foodmart, Super Fresh and Food Basics.
The news sent the company’s shares down as much as 20 percent.