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In an effort to streamline operations as part of its ambitious turnaround plan, the Great Atlantic & Pacific Tea Co. (A&P) is mulling over whether it should sell off its 16 gourmet Food Emporium stores in Manhattan, according to a published report citing an anonymous source.
The grocer, which in the wake of a $122.6 million first-quarter loss named a new president and CEO, Sam Martin, and began putting together a new executive team, said it would consider selling "non-core assets" to improve liquidity, The Wall Street Journal reported. Martin is the third president and CEO for A&P in less than a year, replacing Ron Marshall, who succeeded Eric Claus. A&P also said recently it would shutter 25 underperforming stores.
The article noted that investment bank Peter J. Solomon has been gauging potential buyer interest in the chain for A&P, which could stand to make more than $200 million from such a sale. According to The Wall Street Journal, industry analysts have identified such possible bidders as Angelo, Gordon & Co., owner of Kings Super Markets Inc., and Sterling Investment Partners, which owns the Fairway Market grocery chain.
At presstime, A&P had not responded to a request for comment by PG.