Home Brick Life Brick Pathmark, A&P Supermarkets to Remain Open Despite Bankruptcy

Brick Pathmark, A&P Supermarkets to Remain Open Despite Bankruptcy

4
SHARE
A&P, Brick, NJ (Credit: Federal Realty Trust)
A&P, Brick, NJ (Credit: Federal Realty Trust)

The Pathmark and A&P supermarkets in Brick will not be among 25 stores the Great Atlantic & Pacific Tea Company will close as part of a bankruptcy filing the company announced Monday, though it was not clear if the stores would be among 120 that would be sold in the near-term.

A&P, which operates local supermarkets under its own name as well as Pathmark, filed for Chapter 11 bankruptcy protection after securing $100 million in financing, the company said in a prepared statement.

“The vast majority of our stores are operating normally and will be fully stocked during this process,” the statement said.

ADVERTISEMENT - STORY CONTINUES BELOW


A&P has found buyers for 120 of its stores but operates 296; 25 will close, including the Pathmark store on Indian Head Road in Toms River. Locally, A&P stores in Brick, Ortley Beach and Wall Township will remain open, as well as the Pathmark store in the Laurel Square shopping center in Brick.

Analysts have generally agreed the bankruptcy of A&P was related to a combination of increased competition from Walmart entering the supermarket business, while discount chains such as Aldi and high end chains such as Whole Foods and Trader Joe’s gobbled up sales in both directions.

“They got caught in a downward spiral of sales declines that forced them to cut costs,” Jim Hertel, a grocery industry consultant, told the Wall Street Journal in a report on the company.

The Wall Street Journal also cited high labor costs as a factor in the inability of A&P to turn its business around. The 120 stores for which buyers have been found will be sold on the condition that no collective bargaining agreements are in place, the report said. About 90 percent of A&P’s workforce is unionized.

Buyers for the 120 stores include Pennsylvania-based Acme and Stop and Shop, PhillyVoice.com reported. Stop and Shop already operates stores in Brick, Point Pleasant Borough and Toms River. Acme currently has locations in Manasquan and Long Beach Island.


SHARE
  • Frank Rizzo

    For now at least. Once they close all together the shopping plaza where Pathmark is will fold and be abandoned. It is half empty now and without this draw of shoppers K-Mart will not be far behind followed by the other small business in there. Retail is changing, Costco is a big factor, Walmart and now even Aldi. We will soon be facing many abandoned strip malls or shopping plaza’s like this one. The fact that the Foodtown lot remains vacant tells the tale that we no longer can expect new stores to come in here.

  • shorekitten

    In looking at the lists released so far by Acme, Key Foods and Stop & Shop – neither the Brick A & P nor the Pathmark are listed. We’ll have to wait and see if more stores are added to the 25 that are closing.

    • Frank Rizzo

      See above where I said..”for now”. No one wants to buy the company. Stop and Shop has BOUGHT 25 of them to re-brand..the rest will close when the company can no longer pay their bills.

      • shorekitten

        I wasn’t being argumentative, I was simply stating that I checked lists online, something I hadn’t done before. I saw that neither was listed as closing nor as sold.