Supermarket chain A&P emerges from bankruptcy

The Great Atlantic & Pacific Tea Company, known as A&P, announced today that they have completed a restructuring plan and have emerged from Chapter 11 bankruptcy as a private company.

A&P, which also operates stores under the names Food Emporium and Pathmark, said in a statement today that they assembled a new management team, refurbished stores in key market areas, negotiated a new agreement with suppliers and altered collective bargaining rights with employee unions, according to Bloomberg.

The chain was also able to negotiate $645 million in financing from JP Morgan Chase and Credit Suisse to exit from bankruptcy.

An accomplished bankruptcy attorney can engineer a plan that will allow a company to emerge from bankruptcy and continue operating their business. Under Chapter 11 bankruptcy a financially insolvent business can work on resolving their debt issues while the business still operates.

The A&P chain entered into Chapter 11 bankruptcy in December of 2010 amid slow sales and enormous debt. At that time they were forced to close dozens of stores and cut down on its workforce. They currently operate 300 stores nationwide.

A troubled business has a few bankruptcy structures to choose from depending on the severity of their debts. A bankruptcy lawyer can analyze their financials to determine which structure is the most feasible. Bankruptcy attorneys cannot save every business, but they can help them try to satisfy creditors and get a fresh financial start.