Great Atlantic & Pacific Tea Co Files for Bankruptcy (GAP)

NO this is not the same company as "The Gap" the clothier which ticker is GPS. This company is a grocery and who's margins have been affected by strong competition and profit margin issues.

This company has been around for quite sometime, though the stock price the past year or so show clearly showed something was not quiet right. GAP is trading under a dollar in late Friday trading. Sad to see another American stable falter...

(Reuters writes) "Once the largest U.S. grocer, the owner of about 400 stores under brands such as A&P, Waldbaum's and Super Fresh filed for Chapter
11 bankruptcy in New York with more than $1 billion in assets and more than $1 billion in debt, according to court documents.

As of September 11, A&P had total debt of more than $3.2 billion, but it is unclear how much the company is currently carrying.

JP Morgan Chase & Co (NYSE:JPM - News) will provide $800 million in debtor-in-possession financing, the company said. The U.S. Bankruptcy Court for the Southern District of New York will hold a hearing on Monday to approve a portion of the facility."

Posted in: Gaps,Great atlantic and pacific tea company