Sponsored By

A&P: Not Liable to Pension Partners

MONTVALE, N.J. — A&P here is accusing rival Ahold of purposefully snarling its Chapter 11 bankruptcy case by making “illusory” claims of potential pension liabilities.

Jon Springer, Executive Editor

January 9, 2012

1 Min Read
Supermarket News logo in a gray background | Supermarket News

MONTVALE, N.J. — A&P here is accusing rival Ahold of purposefully snarling its Chapter 11 bankruptcy case by making “illusory” claims of potential pension liabilities.

Ahold on behalf of its U.S. banners Giant-Landover and Stop & Shop has filed 216 separate proofs of claim for any increases in pension contributions that Giant and Stop & Shop may have to pay as a result of A&P’s withdrawal from multi-employer pension plans in which Giant and Stop & Shop participate.

A&P in response to Ahold’s claims argued that the Employee Retirement Income Security Act of 1974 states that companies that withdraw from such multi-employer pension funds are liable to the fund itself and not to individual participants. Although Ahold did not identify particular funds that would require additional contributions, A&P acknowledged it would withdraw from one such plan, Food Employers Labor Relations Association plan, or FERLA.

A&P further asked the court to disallow what it called “vague lease-related claims” intended to impede progress toward the retailer’s emergence from Chapter 11. “Ahold would undoubtedly prefer that the debtors liquidate and sell off their assets at a discount rather than reorganize in the best interests of the debtors’ stakeholders and emerge from bankruptcy as a formidable competitor — even if Ahold’s ‘claims’ were left worthless in the process,” A&P said in court papers. A hearing on the matter is scheduled Feb. 6 at U.S. Bankruptcy Court in White Plains, N.Y.

About the Author

Jon Springer

Executive Editor

Jon Springer is executive editor of Winsight Grocery Business with responsibility for leading its digital news team. Jon has more than 20 years of experience covering consumer business and retail in New York, including more than 14 years at the Retail/Financial desk at Supermarket News. His previous experience includes covering consumer markets for KPMG’s Insiders; the U.S. beverage industry for Beverage Spectrum; and he was a Senior Editor covering commercial real estate and retail for the International Council of Shopping Centers. Jon began his career as a sports reporter and features editor for the Cecil Whig, a daily newspaper in Elkton, Md. Jon is also the author of two books on baseball. He has a Bachelor of Arts degree in English-Journalism from the University of Delaware. He lives in Brooklyn, N.Y. with his family.

Stay up-to-date on the latest food retail news and trends
Subscribe to free eNewsletters from Supermarket News

You May Also Like