Great Atlantic & Pacific Tea Co. Inc.’s Chapter 11 bankruptcy reorganization could be approved as soon as early February.
In a hearing on Jan. 24, the bankruptcy judge presiding over the case approved a $750 million financing package and 14 additional store closures.
According to an A&P news release, the company plans to close 14 stores in 4 states, bringing its expected store closures to 50 under Chapter 11 reorganization.
The company has 336 stores in 6 states: Connecticut, New York, New Jersey, Pennsylvania, Delaware and Maryland. It operates under the A&P, Waldbaum’s, The Food Emporium, SuperFresh, Pathmark, Best Cellars and Food Basics banners.
According to court documents, Judge Robert Drain of the U.S. Bankruptcy Court in White Plains, N.Y., also approved a $400 million revolving loan and $350 million term loan from J.P. Morgan Chase & Co., and Credit Suisse, at the Jan. 24th hearing.
In November, A&P made an agreement with The Yucaipa Cos. LLC, Mount Kellett Capital Management, L.P., and investment funds from Goldman Sachs Asset Management L.P., to receive $490 million of debt and equity financing.
A hearing confirming the company’s bankruptcy plan is scheduled for Feb. 6 and 7.