Tops Seeks OK to Close Some Stores

Tops

Tops Markets is seeking approval to close an unspecified number of grocery stores as part of its Chapter 11 bankruptcy proceedings.

In a court filing, the retailer indicated certain underperforming stores beset by high rents, competition or other factors could close with the court’s approval. The Williamsville, N.Y.-based Tops, which operates 169 stores and five franchise locations, is also seeking approval of liquidation sales, and said it would look to sell the closing units as well.

“The vast majority of [Tops’] stores are already sustainable profit centers, show strong sales numbers, cover important regions, are run by talented managers, maintain sustainable cost structures, or offer the possibility for long-term positive EBITDA trends,” the motion said. “A few of the debtors’ stores have, however, consistently underperformed.”

Tops, which filed for Chapter 11 protection in February to restructure its debt and cost structure, did not identify how many stores might be closed, but said it would inform employees of affected stores through WARN notices and other channels.

A hearing on the proposed closing procedures is scheduled for May 10.