In the span of five years, US retail store A&P has filed twice for bankruptcy. According to analysts, A&P may likely sell or close its remaining stores as it struggles to compete with discounters and specialty chains in the supermarket industry.
A&P has been one of the oldest US supermarket brands. Originally called the Great Atlantic & Pacific Tea Company, it started as a retailer in 1859. During the 1950s, the A&P had more than 4,200 stores. However, due to struggling sales and inability to keep up with the competition, A&P had filed for bankruptcy first in 2010.
Dollar stores, convenience chains, discount groceries and Waltermart chains had downplayed the higher-up costs of A&P with its products. While it could have moved to avert the situation, it did not move fast enough, according to most analysts.
It was also troublesome to show that the stores were quite dirty and have empty shelves due to cost cutting and quick-hiring of replacement staff.
It has about 28,500 employees and has 296 grocery stores nationwide. So far, it has found 120 bidders for its 296 grocery stores.
Now it is actively searching for buyers of the rest of the shops. It plans to shut down 25 underperforming stores.