Stop & Shop Agrees to Pay $25 Million for A&P’s Most Profitable Store

by San Antonio Attorney

Mount Krisco A&P had reportedly been purchased by giant supermarket Stop & Shop for $25 million.

The deal was closed at A&P’s bankruptcy auction, according to anonymous sources.

Stop & Shop was initially the stalking-horse bidder for the store when A&P declared bankruptcy in July.  But the Mount Kisco grocery store was taken off the chain’s package deal and placed in a separate auction that was scheduled on Oct. 1.

Recently, Stop & Shop was granted approval to buy the rest of its bidding bundle.

The Mount Kisco location was the highest-earning A&P store last year, based on court papers filed by A&P.  The said store made $9.2 million in earnings including interest, taxes, depreciation and amortization.

The list of successful bidders has not yet been filed for the bankruptcy court case.  According to reports, the auction of Mount Kisco store was held in private.

Similar to several typical grocery chains, A&P has been crushed by a multitude of solid rivals.  Huge general retailers such as Wal-Mart Stores Inc., and also dollar stores, convenience stores, and discount shops like Aldi Inc. have taken over much of the business of consumers who are cost-conscious, while specialty supermarkets like Whole Foods Stores Inc. have appealed to more high-end buyers.  Because of that, midtier grocers are having difficulties in differentiating themselves.

 

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