The Great Atlantic & Pacific Tea Co. (A&P) has received the go-ahead from the court overseeing its Chapter 11 bankruptcy proceedings to sell its Food Emporium brand and related intellectual property to Key Food Stores Co-Operative Inc., according to a published report.
Judge Robert D. Drain, of the U.S. Bankruptcy Court, in White Plains, N.Y., OK’d the $1.75 million sale to sole bidder Key Food, The Wall Street Journal reported, citing court documents. The deal includes Food Emporium trademarks, domain names, e-commerce business and a mobile app.
Staten Island, N.Y.-based Key Food purchased 23 former A&P stores at an auction held in October. A Dec. 2 auction for the Food Emporium intellectual property was cancelled after no other qualifying bids emerged.
Also in October, it became known that advisory firm Hilco Streambank was acting as A&P’s sales consultant as it sought to shed its brands, which also include Pathmark, Waldbaum’s and America’s Choice. Key Food’s interest in The Food Emporium was made public last month.
A&P filed for Chapter 11 bankruptcy protection last July and has sold off more than 100 of its nearly 300 stores, the rest of which have closed.