Great Atlantic & Pacific Tea Co., operator of the struggling A&P supermarket chain, is considering selling its Food Emporium stores as part of a boarder effort to rid itself of some assets and boost its liquidity, according to people familiar with the matter.
The supermarket operator has publicly said it will consider the sale of "non-core assets" as it looks to improve its liquidity after absorbing some big losses in recent months. Food Emporium is the company's gourmet supermarket banner and one of the more attractive chains it owns.
Great Atlantic couldn't immediately be reached for comment. The company operates a little more than 400 stores under several brands including A&P, Waldbaum's, Pathmark, Food Emporium and Food Basics. It recently announced it would close 25 under-performing or non-core locations.
In recent weeks, investment bank Peter J. Solomon has made an effort to gauge potential buyer interest in the Food Emporium chain for A&P, according to one private equity investor, although it wasn't immediately clear which other banks may be involved.
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