MONTVALE, N.J. — Bankrupt grocer A&P narrowed its net loss during the third quarter and executives expressed optimism as it has access to a "significant amount of liquidity" and is forging ahead with its turnaround plan.
As previously reported, the 395-store supermarket chain filed for bankruptcy on Dec. 12. Furthermore, the court approved $800 million in debtor-in-possession financing, which now is fully accessible by the company.
Sales for the third quarter totaled $1.8 billion, compared with $2 billion in the year-ago period. Same-store sales decreased 4.9%. Net loss during the quarter totaled $199.4 million, or a loss of $3.78 cents per diluted share, compared with a loss of $559.6 million, or a loss of $14.35 per share, in the year-ago period.
"We saw modest improvement in certain of our third-quarter financial results due to the steps we've taken to implement our turnaround plan and the continued dedication of our talented associates. Chapter 11 will allow us to restructure our debt, reduce our structural costs and address our legacy issues. With access to a significant amount of liquidity, we are making strategic decisions that will enable us to complete our turnaround and emerge with a new capital structure and an enhanced ability to provide value to our customers," stated Sam Martin, president and CEO.
In a separate announcement, A&P reported that Hans Heer, GM of The Food Emporium business, has left the company. He has been a member of the company's executive team since 2006. Dan Wodzenski, district manager of sales and operations for The Food Emporium, and The Food Emporium's operations team will report to Paul Hertz, EVP operations at A&P. In addition, The Food Emporium marketing and merchandising team now will report to Tom O'Boyle, A&P EVP.