Pathmark Bankruptcy Update: 9/25

On Monday our union along with Locals 338 and 342, continued meeting with Key Food regarding their acquisition of our Pathmark stores. All of our Local Unions are negotiating together as we did with Stop & Shop and Acme. Negotiations are progressing, and we will all meet again today (Friday 09/25). 

Bankruptcy Court Updates: On Monday Stop & Shop and Acme's purchases of A&P stores were approved by Bankruptcy Judge Drain.

Acme’s original 77 store bid has been reduced to 71. Stop & Shop has been out-bid for the A&P store in Mount Kisco reducing their count of stores to 24.  However, Stop & Shop still has the opportunity to bid higher during the auction.

The Auction: The remaining stores will be auctioned on Thurs. 10/1 and Fri. 10/2 (and if necessary Mon. 10/6 & Tues. 10/7).  We will have representatives at the auction on all dates and will keep you posted on any information that breaks during the auction.

We have been told that there are more than 120 bids submitted for stores in the auction, BUT we do not have any knowledge of how many stores were actually bid on OR who all the potential bidders are. We are still working with all of our Employers and trying to help them to purchase additional stores during the auction.

There will be no final 1113/1114 hearing until after the auction has been completed …. Currently it is scheduled for 10/7/16 (subject to change).

Store Transitions: The transition plans for the Pathmark stores purchased by Stop & Shop are starting to become clear.  The first three of our stores, Pathmark's 619, 626 & 661, will begin transitioning to Stop & Shop next week. 

Stop & Shop will start the application & interview process on Tuesday 09/29/15, and then follow with orientations for the membership in the days that follow.

Resource Fairs: You may have read that we will be hosting workshops and resource fairs for members displaced by the A&P bankruptcy in our September Newspaper.  Our first Member Resource Fair will be on October 7th at our Union Hall (425 Merrick Ave. Westbury, NY) from 9:30 AM - 6:00 PM (you may come and leave at anytime). If you're interested in attending please RSVP here. 

There will be two other fairs in our area, one in Suffolk County on October 15th at IBEW Local 25 in Hauppauge, RSVP here. There will also be a Fair in New York City.  The New York City date is still tentative, once it is confirmed we will let you know. In the meantime you can visit www.ufcwmemberresources.com for more information.

Please do not hesitate to contact us for any questions, concerns or issues.

Thanks again,

Bruce W. Both

President

UFCW Local 1500

For all archived Pathmark updates, vist: www.ufcw1500.org/pathmarkupdates

—IMPORTANT A&P BANKRUPTCY DATES —

Friday, September 11th The Bankruptcy Court will hear UFCW's objections to A&P’s KERP (corporate bonus plan).

Monday, September 21st (tentative) Bid Deadline: All qualifying bids on the stores are due into the Bankruptcy Court. The Bankruptcy Court will announce what Tier I stores have agreements to be sold and what stores will be sold at the auction on 10/1 & 10/2.

Thursday, October 1st and/or Friday, October 2nd The auction for the remaining unsold and or closed stores will be held (depending on number of stores, dates could extend).

Friday, October 2nd (tentative) Bidders can file objections to the sale of stores in the Bankruptcy Court. The UFCW can also file objections to bids made on the stores.

Friday, October 16th A hearing will be held regarding the objections to the sales filed to the Bankruptcy Court. At this stage, the UFCW will have a voice during the auction process to make recommendations on bidders. For instance, if two companies place a comparable bid on the same store and one is a union employer, while the other is non-union, the unionized store would have an advantage and they should likely win the bid. A hearing will be held on A&P's filing of a 1113(c). Bid winners will be formally announced.

Recent A&P posts:

UFCW Local 1500 files official objections to A&P's KERP plan (corporate bonus plan)

Bankruptcy Ruling on Severance & Bumping

A&P Bankruptcy Procedure Dates

Keeping you up to date on all A&P news, we have created a chart below of upcoming scheduled bankruptcy court procedures for your records. 

—IMPORTANT A&P BANKRUPTCY DATES —

Friday, September 11th 

• All qualifying bids on the stores are due into the Bankruptcy Court.The Bankruptcy Court will hear UFCW's objections to A&P’s KERP (corporate bonus plan).

 Monday, September 21st 

• The Bankruptcy Court will announce what Tier I stores have agreements to be sold and what stores will be sold at the auction on September 24rd or 25th.
  

Wednesday, September 24rd and/or Thursday, September 25th 

• The auction for the remaining unsold stores will be held. All qualifying bids on the stores are due into the Bankruptcy Court. The Bankruptcy Court will hear UFCW's objections to A&P’s KERP (corporate bonus plan). 

Friday, October 2nd 

• Bidders can file objections to the sale of stores in the Bankruptcy Court. The UFCW can also file objections to bids made on the stores. 

Wednesday, October 7th 

• A hearing will be held regarding the objections to the sales filed to the Bankruptcy Court. At this stage, the UFCW will have a voice during the auction process to make recommendations on bidders. For instance, if two companies place a comparable bid on the same store and one is a union employer, while the other is non-union, the unionized store would have an advantage and they should likely win the bid. Thursday, October 15th The winning bids of the stores will be formally announced. 

Recent A&P posts:

UFCW Local 1500 files official objections to A&P's KERP plan (corporate bonus plan)

Bankruptcy Ruling on Severance & Bumping

Key Food Negotiations Problems Report

Keeping you updated on all A&P news, the NY Post ran a story today regarding our negotiations with Key Food.  Here's a snip from the story:

Key Food, along with Stop & Shop and Acme, announced plans in July to buy 118 of the 300 A&P stores.

But union officials representing 28,500 workers in the A&P bankruptcy say that while negotiations with the latter two have been productive, the talks with Key Food have not.

Key Food wants to slash the number of full-time jobs and maintain only the lowest-paid part-timers...

Please read the entire NY Post story here. 

We are continuing to meet with all employers to save jobs and have them purchase A&P stores. We must stress, we want to have Key Food as buyers for the stores, however, their demands are unacceptable. We are fighting to save the jobs, benefits and entitlements that all men and women working for A&P have earned and families depend on.

Statement On A&P CEO Sam Martin's Lucrative Bonus & Salary During Bankruptcy

In response to the report from Supermarket News of A&P retaining CEO Sam Martin for a $1.2 million dollar annual salary and $720,000 signing bonus, President Bruce Both released the following statement:

The Following is a Statement from UFCW Local 1500 President Bruce W. Both Regarding the Details of A&P/Pathmark President Sam Martins Salary and Financial Incentive Package

“At a time when we should all be feeling positive about A&P/Pathmark emerging from Chapter 11, we are reminded how unfair the bankruptcy process has been to the A&P/Pathmark employees and union members operating the stores.

While the workers who are the foundation of this company and its only hope for a successful turnaround have been asked to endure painful economic cuts, A&P CEO Sam Martin is being given an unnecessary and excessive signing bonus in addition to his $1.2 million dollar annual salary.

These actions are the type that cut at the morale of the workforce and question whether A&P has any understanding of the sacrifice its employees have made to turn around this once proud supermarket chain and return it to profitability.”

Related:  Supermarket News: A&P to Retain Sam Martin as CEO http://supermarketnews.com/latest-news/martin-stay-ap-ceo

Sam Martin to Remain as A&P CEO

Update for Pathmark Members, A&P has announced Sam Martin will remain as CEO, inking a $1.2 million annual deal, which included a $720,000 signing bonus.

From Supermarket News: http://supermarketnews.com/latest-news/martin-stay-ap-ceo
Martin to Stay as A&P CEO
Thu, 2012-03-01 06:52
By: Jon Springer

MONTVALE, N.J. — Sam Martin has accepted an offer of $1.2 million annually to remain as the chief executive officer of A&P upon its emergence from Chapter 11, court papers showed.

Martin — along with most of his current senior executive team — is set to remain in place as A&P exits Chapter 11 bankruptcy and continues as a private company with new owners. Martin will receive an annual salary of $1.2 million and agreed to a sign-on bonus of $720,000 to be paid by the company’s new owners. Martin will also participate in a long-term incentive plan that could earn him a share of up to 7.5% of the equity in the new company, as well as a short-term bonus plan.

The employment status of Jake Brace, the company’s current chief financial officer and its chief restructuring officer, remains subject to ongoing negotiations, A&P said.

Current senior executives Thomas O’Boyle (chief merchandising officer); Paul Hertz (chief operating officer); Christopher McGarry (chief legal officer) and Carter Knox (chief human resources officer) have also been retained and are likewise eligible for the long-term and short-term incentives as Martin.

Martin will also serve as one of seven members of the board of directors for the new company.

In a separate filing, the United Food and Commercial Workers union indicated it had designated Lou Giraurdo to serve on the board of directors of the new company. The UFCW was granted one board appointee who would not serve on behalf of, or take orders from, the union.

Giraurdo is a partner in a San Francisco law firm of Coblentz, Patch, Duffy & Bass and represents food and financial services firms in acquisitions and refinancings. He is also a co-founder and partner in GESD Capital Partners, a private equity firm with investments in several food and wine companies; a former CEO of Pacific Coast Baking Co.; and a former chairman of Pabst Brewing.

New owners Yucaipa Co., Mount Kellet Capital Management and Goldman Sachs were to appoint five board members. Yucaipa’s Ron Burkle will serve as chairman.

As reported previously, the judge this week approved A&P’s reorganization plan, and the company is expected to emerge from Chapter 11 shortly.

Bankruptcy Judge Approves A&P's Chapter 11 Exit Plan

From Supermarket News: http://supermarketnews.com/latest-news/court-approves-ap-plan

WHITE PLAINS, N.Y. — The U.S. Bankruptcy Court here has approved A&P's Chapter 11 exit plan, and the company could emerge from bankruptcy as soon as this week, reports said Monday.

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The company filed Chapter 11 in December 2010 and has since shuttered dozens of stores.
As previously reported, the reorganization plan includes $490 million in debt and equity financing from Yucaipa Cos., the Ron Burkle-led investment group that has a long history of investments in food retailing. A&P also renegotiated its labor contracts late last year to reduce its costs and to prepare to emerge from bankruptcy. Bankruptcy Court Judge Robert D. Drain was quoted in a Dow Jones report on Monday saying that the contract cuts were “very painful” to the unions.

According to the Dow Jones and other reports, a $40 million fund to pay unsecured creditors will not be part of the reorganization plan, but those creditors could be repaid if the company is acquired within five years for a large enough sum.

A spokesowman for A&P confirmed that the court had approved its reorganization plan and that it was "taking the necessary steps to emerge from Chapter 11 as soon as possible."
A&P had an estimated $6.7 billion in sales for the fiscal year that ended Feb. 25, operating 336 stores under the A&P, Pathmark, Food Emporium, Waldbaum's Food Basics, Super Fresh and Best Cellars banners.

News From UFCW Local 1500: Union Seeks NYC Assistance for Bankrupt A&P

Image by Getty Images via @daylifeNews from UFCW Local 1500

For more information email: info@ufcw1500.org


Grocery Workers Union Seeks City Assistance for Bankrupt Supermarket


Request Meeting With New York City Mayor Bloomberg, Council Speaker Christine Quinn

New York State's largest grocery workers union, United Food and Commercial Workers Union (UFCW) Local 1500, is seeking assistance from New York City Council Speaker Christine Quinn and Mayor Michael Bloomberg in averting the possible closing of up to 58 Supermarkets owned by A&P Supermarkets. The 58 stores located in New York City operate under the Pathmark, Waldbaum’s and Food Emporium banners and employ approximately 6,500 workers throughout the five boroughs. A&P, also known as the Great Atlantic and Pacific Company, filed for Chapter 11 bankruptcy protection on December 6, 2010.

In separate letters sent to Speaker Quinn and Mayor Bloomberg (linked below), UFCW Local 1500 President Bruce W. Both asked for a meeting to discuss the "tremendous negative effects on the economy of New York City" should there be store closings or layoffs. The letter also referred to the long-standing partnership UFCW Local 1500 has had with both parties to help bring more supermarkets and good jobs to New York City.

"The food desert crisis that this City currently faces would reach unimaginable levels without these 58 stores," stated President Both. "These 58 stores provide neighborhoods throughout New York City the essential building blocks for economic security: good food, good jobs and good health. Just as the City has risen to the challenge each time other sectors of the economy have faced economic difficulty, such as Wall Street and the garment industry, we hope that together we can discover ways to help these 58 stores continue to provide New Yorkers with great food and even better jobs," Both concluded.

UFCW Local 1500 Secretary-Treasurer Anthony Speelman added, "Nearly 150 years ago, The Great American Tea Company opened a store on Vesey Street in New York City. Today, that company provides thousands of New Yorkers living wages, health care and pensions. New York City has a vital interest in seeing that this company not only survives but continues to grow."

A&P has 20 stores in Manhattan, 15 in Queens, 12 in Brooklyn, six in Staten Island and five in the Bronx operating under three banners. Nationwide, it has 395 stores, including 163 in New York State.

United Food and Commercial Workers Union Local 1500, based out of Queens Village, represents over 23,000 grocery workers in New York City, Long Island, Westchester, Putnam and Dutchess Counties. Members of Local 1500 are employed by Pathmark, King Kullen, Stop and Shop, Gristedes, Fairway, D'agastinos, Key Food and Shop Rite.

Links:

UFCW Local 1500 Letter to NYC Mayor Bloomberg

UFCW Local 1500 Letter to NYC Council Christine Quinn

NY1: Popular Supermarket Chain Files For Bankruptcy