MONTVALE, N.J., Nov 02, 2010 — The Great Atlantic & Pacific Tea Company, Inc. (A&P, NYSE Symbol: GAP | PowerRating) today announced that it completed the transaction with Big Y Foods, Inc., to sell seven store locations in northern Connecticut. This transaction is part of a comprehensive turnaround strategy initially announced by the Company in late July.
"The seven stores were clearly outside of our core markets and this transaction helps advance our comprehensive turnaround strategy. We continue to evaluate our operating footprint and move forward with steps that strengthen our financial foundation and improve our performance," stated Sam Martin, President & CEO, A&P.
Martin continues, "The Company extends our appreciation and thanks to the Associates for their dedication and service to A&P. We also thank Big Y for their cooperation and successful execution of the transaction."
Total sale proceeds equal $24.6M which includes asset price plus inventory.
The close of this transaction completes one of the identified measures in the announced turnaround plan designed to generate sustained profitability and cash flow, drive sales growth, restore competitive margins to the business and strengthen the foundation of the Company for the long term.
Source: The Great Atlantic & Pacific Tea Company