Grocery chain A&P files for bankruptcy

Grocery store chain Great Atlantic & Pacific Tea Co filed for bankruptcy on Sunday, drained of cash by tough competition and a sluggish economic recovery.
Once the largest US grocer, the owner of about 400 stores under brands such as A&P, Waldbaum's and Super Fresh filed for Chapter 11 bankruptcy in New York with more than $1 billion in assets and more than $1 billion in debt, according to court documents.
As of September 11, A&P had total debt of more than $3.2 billion, but it is unclear how much the company is currently carrying.
JP Morgan Chase & Co will provide $800 million in debtor-in-possession financing, the company said. The U.S. Bankruptcy Court for the Southern District of New York will hold a hearing on Monday to approve a portion of the facility.
The Montvale, New Jersey-based company said its stores will remain fully stocked and open with no interruption of business. It has struggled since it acquired Pathmark Stores in 2007 with a $1.4 billion financing package.