Montvale-based Great Atlantic & Pacific Tea Co., parent of the A&P grocery chain, said Monday it reached an agreement with its principal wholesale supplier that will allow the supermarket company to save more than $50 million annually, after it exits from Chapter 11 bankruptcy. The new accord must be approved by the bankruptcy court.
Great Atlantic & Pacific had a net loss in April of $48 million, and a loss from continuing operations of $33 million, according to documents the company filed with the U.S. Bankruptcy Court for the Southern District of New York last week. Compared with March, the company had a wider net loss but a smaller loss from continuing operations. For March, the company reported a net loss of $35 million, and a loss from continuing operations of $34.6 million.
The new supply and logistics agreement is with C&S Wholesale Grocers Inc. Great Atlantic & Pacific Chief Executive Officer A&P CEO Sam Martin said in a statement that the new agreement will strengthen the company’s existing relationship with C&S and “significantly reduce A&P’s cost structure upon emergence from Chapter 11, while ensuring consistent product availability in our stores and greater diversity of products for our customers.”
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