A&P’s request to back out of commitments to workers so as to use the savings to provide equitable disbursements to lenders is “true only in the Alice-in-Wonderland world of corporate reorganization,” the United Food and Commercials Workers union said Friday.
Citing a perilous financial condition and fruitless negotiations with labor unions, A&P has filed emergency motions under section 1113 of the U.S. Bankruptcy Code to unilaterally strike the “bumping” and severance obligations of its collective bargaining agreements with its workers.
A&P is expected to notify all of its employees of impending layoffs as it proceeds with plans to close or sell all of its stores under its Chapter 11 bankruptcy wind-down. A&P employs approximately 28,500.
Supervalu’s potential spinoff of its Save-A-Lot division will prime the discount banner for aggressive unit growth and separate a business that has little in common with the distributor’s retail and independent businesses.
Sprouts Farmers Markets on Thursday said price investments and higher expenses brought down margins during the fiscal second quarter, while comparable store sales growth was lower than initially expected.
Stock in Fairway Group Holdings was down by more than 20% early Wednesday following Tuesday evening’s announcement of a quarterly losses and sales declines more severe than Wall Street had anticipated.