Cropsey Avenue’s Pathmark will soon become a Stop & Shop.
The Gravesend supermarket, located at 2965 Cropsey Avenue, is one of 25 stores in the Greater New York City area to undergo the change in ownership after The Great Atlantic & Pacific Tea Company (A&P)—the parent company to stores like Best Cellars, Food Basics, The Food Emporium, Pathmark, Superfresh and Waldbaum’s—announced a $146 million agreement with the Stop & Shop Supermarket Company LLC to acquire the stores.
“Stop & Shop is always looking for convenient locations to better serve our customers,” said Don Sussman, Stop & Shop’s New York Metro Division president. “We are very happy to have the opportunity to expand our presence in greater New York and serve new customers. We look forward to providing customers with delivering unmatched selection, quality and value that they have come to expect from Stop & Shop.”
The acquisition comes after A&P filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code and, in total, executed purchase agreements covering approximately 120 of its stores for nearly $600 million, according to A&P.
“After careful consideration of all alternatives, we have concluded that a sale process implemented through Chapter 11 is the best way for A&P to preserve as many jobs as possible, and maximize value for all stakeholders,” said Paul Hertz, president and chief executive officer of A&P. “The interest from other strategic operators has been robust during the company’s sales process to date, and we have every expectation that will continue in Chapter 11.”
According to the supermarket franchise, all asset and store sales will be conducted through a court-supervised sale process and the company will still continue to conduct business at its stores throughout the process. Out of the company’s 296 stores, the 25 stores slated to be taken over by Stop & Shop in the near future, including another Brooklyn Pathmark located at 625 Atlantic Avenue, are being sold due to “lack of interest and significant ongoing store operating losses.
“While the decision to close some stores is always difficult, these actions will enable the company to refocus its efforts to ensure the vast majority of A&P stores continue operating under new owners as a result of the court-supervised process,” added Hertz. “We greatly appreciate the continued support of our customers, suppliers and employees, who have maintained an unwavering commitment to our business and our customers.”
Additionally, as of July 20, A&P received court approval and was granted immediate access to $50 million of the $100 million debtor-in-possession (DIP) funds provided by Fortress Investment Group—money that will allow A&P stores to continue operating normally and pay suppliers, vendors, and employees.
According to Stop & Shop, upon completion of the agreement, the company plans to convert the acquired 14 Pathmarks, nine Waldbaum’s stores, and two A&Ps into Stop & Shop stores. As of now, the sale is expected to close within the second half of 2015 and details regarding the conversions should be announced in the near future.