Grocery Store Giant A&P Has Declared Bankruptcy Again; Labor Unions Prepare for Fight

A&P declared bankruptcy this past week for the second time in five years, invoking the ire of labor unions

One of the nation’s largest supermarket brands is folding in on itself.

The Great Atlantic & Pacific Tea Company — better known as A&P — one of the oldest and most recognizable supermarket brands in the country, which owns grocery stores like Pathmark and Waldbaum’s, has declared bankruptcy.This is the second time in five years that A&P has filed for Chapter 11.  

Financial analysts speculate that this likely indicates the imminent demise of the grocery store chain. A&P has said that it will probably close or sell its 300 remaining stores, according to The Wall Street Journal. In response, labor unions are ready to fight for the rights of workers who may be displaced as a result of the declaration of bankruptcy.

In 2010, the last time that the chain went belly up, labor unions negotiated a contract that would protect grocery store workers with concessions, including three percent pay cuts across the board. But now, labor unions are concerned that A&P won’t honor the contracts, because they won’t be in charge anymore. According to the New York Post, Acme, Ahold, and Key Food will take over any remaining stores. The United Food and Commercial Workers International Union is currently working on securing jobs for A&P workers.


“We expect a positive result in these efforts,” the union website states, because the companies expected to buy the remaining stores “are projecting an infusion of capital, increased sales and an expansion of the business.”