MONTVALE, N.J. — A&P is projecting that revenues will grow in each of the next four years behind a $390 million program to renovate its 335 stores.
The figures come from a disclosure statement filed this week in U.S. Bankruptcy Court including financial projections associated with the retailer’s plan of reorganization. The projections call for sales to increase in each of the next four fiscal years beginning in late February.
Under the plan, same-store sales would increase by 2.2% in 2012; 3.0% in 2013; 3.5% in 2014 and 3.0% in 2015. Projections assume the company will spend $560 million in capital, including $390 million for store renovations, over the period. Figures include the assumption of 1.2% inflation in 2012 and 1% inflation in each of the three years to follow. The projection also assumes annual cost reductions of $50 million in 2012 and $75 million in ensuing years.
The document kept profit projections confidential.
In other news, the judge in the Chapter 11 case in a hearing Monday approved the retailer’s motion to enter into new collective bargaining agreements with union employees.
The motion faced some opposition from rival operators Stop & Shop/Giant Food and King Kullen, which argued they could be affected by changes to multi-employer pension plans as a result of the new agreements, but were uncertain because the agreements were filed under seal. Sources Tuesday said the judge would make pension protection agreements public, but would keep term sheets confidential.