A&P is headed into the history books as its Superfresh and Pathmark stores close or become part of rival Acme Markets.
Acme Markets earlier announced it has entered into an agreement to acquire 76 A&P stores in Connecticut, Delaware, Maryland, New Jersey, New York, and Pennsylvania under the A&P, Superfresh and Pathmark banners.
A list from Acme indicated Superfresh stores on Marsh Road in north Wilmington, the north edge of Newark and Rehoboth Beach, as well as Pathmark stores on Kirkwood Highway west of Wilmington and College Square in Newark would be acquired under its proposed plan. A store in adjacent Ocean City, Md. is also on the list.
Acme later opted to not acquire the north Newark store. In the meantime, A&P plans to close a Pathmark store on Du Pont Highway in New Castle. and a Superfresh store off Route 9 in New Castle, the News Journal reported.
A&P, in filing for bankruptcy protection, had indicated it would close stores on Lancaster Pike, near Wilmington and off Philadelphia Pike in the Claymont area.
Click here for an earlier story on the A&P Chapter 11 filing, which took place in U.S. Bankruptcy Court for the Southern District of New York (New York City).
The offer is subject to customary legal and bankruptcy court approvals, following A&P’s Chapter 11 filing on July 19, including the potential for higher bids to be submitted and antitrust approval.
It was not immediately clear if the announcement was tied to an earlier report that Acme and the parent company of Giant stores in the region were part of a bid for a piece of the A&P business.
Another possible player could be Wakefern Foods, the cooperative that serves Shoprite stores in the region.
A&P has asked the court for an order requiring other bidders to submit their bids by September 11, 2015, with an expectation that court approval for the sale of the stores would be received by October 15.
Acme a wholly-owned subsidiary of AB Acquisition LLC (Albertsons Companies), operates 107 stores across Pennsylvania, Delaware, Maryland and New Jersey.
Acme has been working been working to turn around its store operations, after apparently losing its No. 1 market share position in the Delaware Valley to Shoprite. Acme is still believed to have the biggest market share among grocers in northern Delaware.
The transaction, if completed, would expand the ACME Markets footprint in a strategic and vibrant market and build upon A&P’s rich history of delivering quality products and services in the neighborhoods they serve,” an Acme release indicated.
RBC Capital Markets is serving as exclusive financial advisor in connection with this transaction. Milbank, Tweed, Hadley & McCloy LLP is serving as lead bankruptcy counsel. Schulte Roth & Zabel LLP is serving as outside legal counsel on antitrust matters. Greenberg Traurig, LLP is serving as outside legal counsel on real estate matters. Citigroup Global Markets Inc. and Bank of America Merrill Lynch provided committed financing in support of the acquisition, Acme disclosed.
