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Reports: Tops Markets close to bankruptcy

Union rep: Meetings taking place this week

Michael Browne, Executive Editor

February 20, 2018

1 Min Read
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Tops Friendly Markets could file for Chapter 11 bankruptcy protection as early as next month, according to a Bloomberg report over the weekend.

The report cited people familiar with the situation who were not identified and said the company's debt load and intense industry competition are behind the potential filing.

Tops, based in upstate Williamsville, N.Y., operates 178 stores in the Northeastern United States and employs more than 15,000 people. 

Sales dropped for Tops when the U.S. government cut food stamp subsidies, whose users account for 10% of the chain's annual revenue, according to the Bloomberg report. 

Since 2007, Tops has been owned by three separate groups. Ahold, the international food retail conglomerate based in the Netherlands, sold Tops to Morgan Stanley Private Equity in 2007. In 2013, Tops' management bought out Morgan Stanley Private Equity.

Tops has not yet commented on the report; however, the head of the union representing more than 12,000 Tops employees issued a statement on Sunday.

Frank DeRiso, president of UFCW Local One said: "Since mid-January, UFCW Local One has been consulted by our legal team consisting of health care, pension and 401(k) attorneys and an attorney that specializes in restructuring and bankruptcy filings. We have additional meetings set up this coming week to discuss more strategies to hit this situation head-on." 

News of Tops’ possible bankruptcy filing follows last week’s announcement of Bi-Lo LLC reportedly preparing to file bankruptcy.

Editor’s note: This is a developing story and we will update it as information becomes available.

Read more about:

Tops Friendly Markets

About the Author

Michael Browne

Executive Editor, Supermarket News

Michael Browne joined Supermarket News in 2018 after serving in managing and executive editor capacities at leading B2B media brands including Convenience Store NewsLicense Global and Travel Agent. He also previously served as content production manager for print and digital in the Business Intelligence division of Informa, parent company of Supermarket News and Nation’s Restaurant News.

As executive editor, Mike oversees the editorial content of supermarketnews.com as well as the monthly print publication. He also directs all content-based brand-related projects including the annual Top 75 Retailers report, Category Guide, Retailer of the Year, research surveys and special reports, as well as podcast and webinar content. Mike has also presented and moderated at industry events.

In addition to the positions mentioned above, Mike has also worked as a writer and/or editor for special projects at American Legal Media (ALM), managing editor for Tobacco International, special projects editor at American Banker • Bond Buyer, and as production editor for Bank Technology News and other related financial magazines and journals published by Faulkner & Gray.

A graduate of Fordham University, Mike is based in New York City, where he was born and raised.

Contact Mike at [email protected] or follow him on Twitter and LinkedIn.

 

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