A&P has received bankruptcy court approval to sell its Food Emporium brand and related intellectual property to Key Food Stores Co-Operative Inc.
A report from the Wall Street Journal on Tuesday stated that Judge Robert D. Drain of the U.S. Bankruptcy Court in White Plains, NY, gave the green light to the $1.75 million sale, according to court documents. The deal includes the assumption of certain liabilities, Food Emporium trademarks, domain names, e-commerce business, and a mobile app, the Wall Street Journal reports.
Key Food was the only bidder for the property.
Founded in Brooklyn, NY in 1937, Key Food is a cooperative of independently owned supermarkets located across Connecticut, New Jersey, New York, and Pennsylvania. The company acquired 23 former A&P locations at an auction held last October.
In October, it was also revealed that advisory firm Hilco Streambank began seeking interested buyers for a number of A&P’s brands and intellectual properties.
A&P declared bankruptcy for the second time this past July with approximately $2.3 billion in debts and $1.6 billion in assets.
As of October 2015, Great Atlantic & Pacific Tea Co. operated 297 supermarkets and other stores under several brands, including A&P, Waldbaum’s, SuperFresh, Pathmark, Food Basics, Food Emporium, Best Cellars, and A&P Liquor.
More than 100 of the company’s stores have been sold. The rest, however, remain closed.