A&P Seen Using Bankruptcy To Shut About 100 Stores

WILMINGTON, Del., Dec 13 — Grocery store chain A&P, which filed for bankruptcy on Sunday, may have to shutter a quarter or more of its stores if it hopes to survive, analysts say.

In bankruptcy, the company officially known as The Great Atlantic and Pacific Tea Co GAPTQ.PK will get a chance to perform radical surgery on itself as it faces growing pressure in the low-margin supermarket business.

The company received interim approval from a bankruptcy judge on Monday for an $800 million bankruptcy loan, which analysts said could give it 18 months for an overhaul.

"It's a tough workout," said Joe Stauff, who analyzes distressed companies for Susquehanna International Group.

To read the rest of the story, please go to: Reuters.