The declaration of bankruptcy by the Great Atlantic & Pacific Tea Company (A&P), a supermarket operator, has made it one of the largest companies to make a Chapter 11 filing this year, reports the New York Times.
According to the source, A&P claimed in its bankruptcy filing that it had $2.5 billion worth of assets and was $3.2 billion in debt as of September 11 of this year, representing a deficit of near $700 million. The company has posted losses in each of the past several quarters, losing $153.7 million in the quarter ending September 11.
"We have taken this difficult but necessary step to enable A&P to fully implement our comprehensive financial and operational restructuring," company CEO Sam Martin said in a statement.
According to the source, A&P was once one of the country's largest supermarket chains, boasting as many as 16,000 stores across the nation.
The company's website says that it now operates 395 stores under six different brand names, concentrated primarily in New York, New Jersey, Connecticut, Pennsylvania and Delaware.