News Break:
A&P FOR SALE?
"Labor unions representing workers at A&P and its
banner companies on Monday said they had confirmed
that the retailer is actively seeking buyers and
has received interest from several potential purchasers."
banner companies on Monday said they had confirmed
that the retailer is actively seeking buyers and
has received interest from several potential purchasers."
This just revealed in an article on SupermarketNews.com.
Full story at SupermarketNews.com
Update 6.18.15:
Some additional articles have come out today
with a little more information about the impending sale.
Apparently A&P is looking to sell about half of their stores.
Articles can be found a both NewYorkPost.com and
ProgressiveGrocer.com
I'd love to see the list the Post is referring to!
I was hoping for a link but no such luck.
Update 6.18.15:
Some additional articles have come out today
with a little more information about the impending sale.
Apparently A&P is looking to sell about half of their stores.
Articles can be found a both NewYorkPost.com and
ProgressiveGrocer.com
I'd love to see the list the Post is referring to!
I was hoping for a link but no such luck.
Shame they couldn't have done this about 4 years earlier...That would have saved so many stores.
ReplyDeleteUnited Food and Commercial Workers union statement in the article: "We will DEMAND [caps mine] a seat at the table with both the A&P Company and any potential buyers..." -- all you need to know about why this once-great company is in the current situation.
ReplyDeleteI tend to agree, I believe unions made it difficult for Bruno's survival, and the "package deal" makes it extremely difficult to sell chains, and instead the company flakes off stores and eventually goes out of business (and everyone loses). More likely that A&P goes out of business, others snap up the real estate (urban markets, very nice), while some larger company runs a few A&P stores under that name.
DeleteI don't think you can entirely blame the unions. Shoprites are mostly union, and they are very successful in areas where they compete with A&Ps. I think A&P just lost their way and made a lot of mistakes (like buying Pathmark) that put them into the position they are in today.
DeleteThat being said, this union bullying certainly isn't going to be attractive to prospective buyers.
Kroger seems like the most natural suitor, since there is no overlap in their current territories. And Kroger has a lot of experience with unions.
Either that or they go peacemeal. Remember when Grand Union was broken up by C&S after they acquired the whole company.
I think it is possible to return A&P to their former glory, at least to a certain extent. But it's going to take a lot of work and the willingness to close even more stores. Might as well jettison the Pathmark brand name while you are at it - either close up all the stores, sell them, or rebrand them. And most of them need gutted and remodeled. Pathmark is the closest grocery store to my house, but I go out of my way to not shop there. I will only go there if I am in a pinch and don't feel like driving further. I avoid the fresh departments.
Pathmark is the most damaged brand by far, and I think no matter who buys it, even more stores will be closed. What I'd kinda like to see is a private equity firm, heck, maybe even AB Acquisition, take over, give Acme back some stores, and divvy up the brands, eventually spinning off A&P as a tiny but strong independent.
DeleteRemember Shopwell, which founded The Food Emporium?
ReplyDeleteThe Bergen Record had a story on the strategic review and mentioned the possibility of a second bankruptcy filing, which could facilitate the liquidation of A&P's real estate assets.
ReplyDeletehttp://www.northjersey.com/news/business/is-montvale-based-a-p-supermarket-chain-poised-for-sale-1.1356929
Will ACME try to get the Aramingo Ave store back from Pathmark? Wouldn't that be crazy! They've been wanting to unload all their Philly stores for years and ShopRite won't grab this once since they have a store nearby. Aramingo ACME to return!!! I hope so anyway.
ReplyDeleteACME needds to bite the bullet and put the BIG A as it used to be called back on the map. So many closed acme s i see have other food retailers in them. ACME needs to take a GOOD LOOK and get back on the map.
ReplyDelete