The bankrupt corporation that owns Pathmark and Superfresh said Monday that it had renegotiated its contract with the same major food supplier that it had partly blamed for its woes when the grocer filed for bankruptcy protection in December.
The Great Atlantic & Pacific Tea Company Inc. said it had reached new terms with C&S Wholesale Grocers Inc., and that the new agreement would save the Montvale, N.J.-based supermarket debtor more than $50 million a year once it emerges from Chapter 11 reorganization.
Debt-plagued A&P had blamed "unfavorable" contracts with C&S, then supplier of about 70 percent of inventory at its stores, among the factors leading to its bankruptcy declaration.
The new deal with the Keene, N.H.-based supplier requires approval of the U.S. Bankruptcy Court for the Southern District of New York. - Maria Panaritis