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Key Food Stores Co-Operative Inc. is acquiring 23 stores from the bankrupt Great Atlantic & Pacific Tea Co. (A&P).
The newly acquired locations are operated under the A&P (three), Food Basics (three), The Food Emporium (four), the Pathmark (three), and Waldbaum's (10) banners in various locations throughout New York and New Jersey.
The purchase of the former A&P stores will bring the Key Food co-op to 212 stores, add about $400 million in annual retail sales and raise total annual retail sales to $2.3 billion, according to the company.
"The customers of these stores deserve a high-quality neighborhood grocery store, and we are thrilled to be able to play that role," noted Dean Janeway, CEO of Staten Island, N.Y.-based Key Food, adding that the acquisition will save around 1,800 jobs in the stores.
The acquired locations will be converted to the Key Food and Food Universe banners, among others. Two of the stores will be operated at the corporate level – a first for Key Food, whose other stores are all member-owned and -operated. The corporate-owned locations will operate under the Food Universe banner.
Key Food said that it expects to complete the purchase of all 23 stores by mid-November, with grand-opening ceremonies slated to take place next spring.
Earlier this month, A&P revealed Key Food among the successful bidders for some of its New York and New Jersey stores.
Key Food members' stores operate under the Key Food, Key Food Marketplace, Key Fresh & Natural, Food Dynasty, Food Universe, Urban Market, and other banners in all five New York City boroughs, Long Island, upstate New York, New Jersey, Connecticut and Pennsylvania.