Slumping Sales, Mounting Debt Force A&P Into Ch. 11

Law360, New York (December 13, 2010, 6:55 PM EST) -- The Great Atlantic & Pacific Tea Co. Inc., operator of A&P and other grocery chains, has filed for Chapter 11 bankruptcy protection to restructure a business burdened by an increasingly competitive marketplace and a heavy debt load that shaved away profits as the recession cut into sales.

The Montvale, N.J., company and 53 affiliates filed a petition Sunday in the U.S. Bankruptcy Court for the Southern District of New York seeking court protection while it undergoes a financial and operational turnaround.

The petition, listing assets of...
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