Skip navigation

A&P Shares Slide on Bankruptcy Fears

Shares of A&P here tumbled below $1 per share early Friday amid speculation that the chain was nearing bankruptcy.

MONTVALE, N.J. — Shares of A&P here tumbled below $1 per share early Friday amid speculation that the chain was nearing bankruptcy.

A Bloomberg report early Friday said the chain had hired a law firm to represent it in negotiations with creditors. Struggling with massive losses and deteriorating sales, A&P said in October that it was negotiating a new lending agreement with its banks and had expected to finalize a deal within weeks, but no such agreement has been announced. The company last month raised $90 million in a sale-leaseback deal and completed the sale of seven stores.

Stock in A&P was down by more than 65% following the Bloomberg report, which cited two sources saying a Chapter 11 filing could come as early as this weekend. A spokeswoman for A&P was not immediately available for comment.