PORTLAND, Ore. — The fall into bankruptcy court by the Great Atlantic & Pacific Tea Co. is the culmination of years of decline but creates an opportunity for its competitors and could mean further consolidation in the supermarket industry.
The nation’s oldest grocer filed for Chapter 11 bankruptcy protection Sunday after years of struggling with enormous debt, falling sales and rising competition from low-priced peers.
The company, which owns A&P, Pathmark, Super Fresh and other grocery stores, is scheduled to head to court Monday.
The lack of a prenegotiated bankruptcy plan leaves it unclear who will wind up owning the company or how creditors will be paid under this arrangement, though common shareholders will likely see their stakes lose all value.
