What Does The A&P Bankruptcy Mean For The Upcoming NoLibs Pathmark?
Here’s a little-known fact (at least for those outside grocery store circles): In 2007, the Great Atlantic and Pacific Tea Co. (A&P) acquired Pathmark for $1.4 billion, which included $475 million in debt financing. This came after decades of downsizing and increased competition from an increasingly balkanized grocery-market market (the surge of pseudo natural food stores like Trader Joe’s and Whole Foods for some, cheap all-your-shopping Target and Wal Mart for others) and on Sunday, these factors, combined for the ultimate sad orgy (2-3 years of the Great Recession) found A&P filing for Chapter 11 bankruptcy.
(Note: The answer to the question in the headline is below)
According to APP.com (a news site based out of New Jersey), court papers listed $2.4 billion in assets and $3.2 billion in liabilities for the Jersey-based company. The Inky notes that much of A&P’s woes stem from its 2007 acquisition of Pathmark, which was financed by…wait for it…Lehman Brothers and Bank of America, according to a 2007 Associated Press article.
It’s also noted by a Business Wire press release that in spite of the filing, J.P. Morgan Chase will provide the company with $800 million in financing and the company insists stores are “fully stocked and will remain open.”
That was all before. Moments — seriously, moments! — before this blog was supposed to go up, Bart Blatstein, President of Tower Investments, who owns the property returned our call and assures us all plans for the 2nd and Girard Pathmark are on target. In fact, he says, the Pathmark on Girard is the “flagship for the company, at least as the company sees itself as. Work is continuing, it’s almost done and it’ll be open in a couple months.”
The Pathmark in NoLibs will be a ‘higher-end’ store, and the company hopes this will mark the beginning of more stores just like it.
The Chapter 11 filing, according to Blatstein, will be used as a reorgnization technique so the company can unload what could be referred to as its toxic assets, aka, locations acquired in the 2007 deal that actually hurt A&P’s overall company profits. “It’s ironic,” says Blatstein, “because Pathmark and A&P will emerge as a much stronger company…They’re getting rid of their old baggage so the company can reemerge stronger and with a better direction.”
(Answer to the headline: Basically nothing.)
Image: Tower Development
UPDATE, MONTHS AND MONTHS LATER: The NoLibs Pathmark has been canceled, according to Blatstein! Check out this post at the Inquirer.
I work for A&P/Pathmark, the store is still on and scheduled to open
This is probably straying off the subject but I think with the neighhood surroundings here with the Piazza and the whole area building up.. I and my wife are vegans and I’m sure that a large portion of the housing here are either vegetarians or vegans.. It would sure be nice to see Pathmark add a section of foodstuffs especially suited to our needs.. Veganaise for our mayonnaise, Gourmet Vegan Cheese, Vegan meat substitutes etc.
It would sure beat having to go to Whole Foods on South Street all the time.. Sure wish more Vegans/Vegetarians would join me here in persuading Pathmark to give it a try…
George & Rosemarie
This Pathmark will bring an era of great fresh food value to the community. While not itself being the catalyst for turning around a great supermarket company, it will give Great A&P a boost, to open a new store with the hope of adding on, instead of subtracting from, their remaining store base.
According to Food Trade News June issue expect all 54 Delaware Valley Pathmark/Food Basics and SuperFresh markets to be auctioned off soon to geet A&P our of bankruptcy.Many industry observers including retail consultant Maria Panaritis expect Giant/Carlisle to be the successful bidder.
According to Food Trade News June issue expect all 54 Delaware Valley Pathmark/Food Basics and SuperFresh markets to be auctioned off soon to get A&P our of bankruptcy.Many industry observers including retail consultant Maria Panaritis expect Giant/Carlisle to be the successful bidder.
Giant/Carlisle is expected to announce that it will bid on atleast five Pathmark locations in the city at the upcoming bankruptcy auction Its first city location will open soon on Grant Avenue on the site of the old Penn Fruit bakery. Giant/Carlisle is the only United State division of DN based Royal Ahold which is not unionized.
PATHMARK NORTHERN LIBERTIES WILL OPEN NEXT MONTH…THIS IS NOT A JOKE. DESPITE VICIOUS PREDICTIONS IN A FOOD TRADE NEWSPAPER, A&P WILL NOW REBRAND ALL DELAWARE VALLEY STORES AS”PATHMARK FRESH” INCLUDING ALL CUURENT SUPERFRESH FOOTPRINTS. JUST A REMINDER, DO NOT ALWAYS BELIEVE EVERYTHING YOU READ OR HEAR IN THE TRADE OR GENERAL PRESS. PATHMARK WAS BORN IN 1968 AND SHOULD BE AROUND FOR MANY.MANY YEARS. PLEASE GOD
The inept Great Atlantic & Pacific Tea Company is once again making an assinine decision by opening what should have been an affordable Pathmark at Second and Girard, will now be an OVER PRICED SuperFresh. The same identical merchandise is generally priced 15 to 22% higher at SuperFresh. Even their weekly ad has the same items overpriced. In the ad which breaks on July 15, Pathmark has Heinz Kethchup 40oz at $1.88; while SuperStale has it listed on sale at $2.49. We in Northern Liberties are very thankful to Bart Blatstein for this very beautiful development; but he is making a terrible error by letting A&P gouge the many demographically plain folks in this nighborhood with PREDITORY PRICING. PATHMARK would have brought LUCK to A&P. SuperFresh is Super Stale.
With all respect to the very honest employees at the other three SuperFresh footprints here in Center City; many tell us they personally prefer ShopRite quality and PRICES.
A&P executives have told me that they would like to rid themselves of the urban chain, Pathmark. This is why our beautiful new supermarket will be the upscale SuperFresh. Even though pricing is generally higher, it will be fashioned after the ritzy A&P Manhattan chain, the Food Emporium. Our Northern Liberties neighbors will not have to go to Whole Foods, Trader Joes or even DiBrunos to get the very best food this world has to offer. All store personnel will be trained to be knowlegeable of every one of the tens of thousands of items available. There will also be many cooked items, similar to Wegmans, available in this very beautiful venue. It was really worth the wait. Who wanted a lower priced urban store anyway?
A&P EXECUTIVES HAVE TOLD ME THEY WANT TO RID THEMSELVES OF THE URBAN CHAIN, PATHMARK. THAT IS THE REASON A&P FILED CHAPTER 11. A&P HAS PROMISED TO MAKE THIS THE MOST UPSCALE SUPERFRESH EVER. IT WILL BE FASHIONED AFTER THE A&P RITZY MANHATTAN CHAIN, THE FOOD EMPORIUM. IT WILL HAVE ALL THE AMENTITIES OF WHOLE FOOD, TRADER JOES,DIBRUNOS AND WEGMANS ALL IN ONE. PRICING WILL BE TOLERABLE. ALL EMPLOYEES WILL BE TRAINED TO ASSIST GUESTS ON EVERY ITEM.
To make up to all the riff raff who are upset with me that a high end SuperFresh is going in to The Piazza, I would like to announce that I am building a new shopping center at 9th & Girard to accommodate the have nots of this neighborhood. It will be SAVE A LOT owned by another sleazy friend of mine, Pat Burns, who also owns Fresh Grocer which has many sanitation issues. Burns is also a good friend of Fast Eddy (Midges X) Rendell. We are all very HONEST. So once again, riff raff, stay out of The Piazza,and hang around Save A Lot at 9th & Girard. STAY IN YOUR PLACE. Thank You, Your good friend Honest Bart.
I am thrilled for Miss Panaritis and the thousands of N.L. affluent young professionals who love to be OVER CHARGED at SuperFresh compared to current sister Pathmark. There are thousands of Center City residents who are middle-aged and older; who are desperate for an affordable market to obtain basic groceries for their health, and they cannot be schlepping on a zillion SEPTA buses out of center City to purchase affordable groceries. Even if some of these folks were eligible for food stamps, they would decline for personal pride. THE CITY NEEDS TO ENTICE AN AFFORDABLE CHAIN, SUCH AS ALDI, OWNED BY THE ALBRECHT FAMILY; WHICH ALSO CONTROLS TRADER JOES, TO OPEN A FOOTPRINT IN CENTER CITY. P.S. My family loves Jeff Brown ShopRite at 52nd & Jefferson. Jeff is one of my contributors and has the best prices and Grade A ShopRite private label. Even the suburban based Professors who teach at St. Joes, shop at that location. A&P private label “Americas Choice” did not score well with Progressive Grocer. ALDI has great private label qulaity control.
In my old neighborhood on Bustleton Avenue A&P calls its store Food Basics which sells the same merchandise as Super Stale at much lower prices. Somerton, and Lower Southampton , radius around Food Basics. net income according to Census figures is similar to my Northern Liberties. The only difference is there aint no competition at 2& Girard. Super fresh is SUPERSTALE. I think I will schlep over to Pathmark of Aramingo and SAVE like my parents did when I was a kid at 7400 Bustleton Avenue Pathmark which closed on Sept 15,1983. Why does A&P have to cheat people in certain neighborhoods?
An enticing SuperFresh will soon open in NoLibs.
Remember, SuperFresh has always had great grand opening specials.
A flagship SuperFresh is just the tonic A&P needs these days.
And NoLibs shoppers will have their first opportunity to experience famous Jane Parker fruit cake in the coming months.
Now that I am officially taking control of A&P, I shall grant an exclusive interview with the most popular P&P member Panaritis, at an A&P store of her choice, excluding Marple. One of my seven girlfriends shall accompany me. It might be Dasher, Prancer, Comet or whomever has $$ signs in her…………. I just donot know why they all like me!!
Wonderful tale, believed we’re able to combine several unrelated data, nevertheless well worth taking a look, whoa did one learn about Mid East has got much more problerms as well.
Please read Food Trade News November 2011 issue and grow up!! Make sixtyninth street great again!!
B U R K L E U P
I prefer EXTRA VIRGIN olive oil from Greece
Maria, please tell Miriam at City Hall that Featherman wishes to challenge BB
I need to hide from the awful press in this here town. Might Mr Bart Blatstein give me refuge in his swimming hole on germantown avenue and supply me with 22 year- old bleach- blond bimbos?
Shicksas only. No JAPS!!
Just moved my belongings into Bellevue Hotel to be close to the Inquirer when I take over. My friend Ron Burkle owns this building and the Strawbridge & Clover building where Inky is to be located.
I am, regretfully leaving this region to take a job with the Castro brothers in Havana; hopefully they are more trustworthy than the Streets.
Good things the dopes in Northern Liberties think Superstale superfresh is another company. (Consumer Reports May issue) maria. The same crap at higher prices. HaHa!!
wrong story. take 15 trolley to 31 & girard bottom dollar
how much can i milk the r e of SVU???????????????????????????????????