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

A&P in Bankruptcy Court Update

A&P in Bankruptcy Court Update

Here  is a brief summary of a hearing that took place yesterday in the bankruptcy court:

UFCW counsel emphasized the sacrifices employees had made since the last bankruptcy, advised the court that local unions were meeting with potential buyers in connection with the sale process, and stated that potential buyers should not attempt to go around the union.

A&P’s lawyers stated that while they would continue to meet with the local unions to try to negotiate acceptable agreements, that they expected soon to file an emergency motion seeking to modify our collective bargaining agreements.

The court approved revised store sale procedures which require A&P to consult with the union before making any store sale decisions.  The court also set a store bid timetable requiring that all bids under the initial bidding process be made by September 11, and that all qualified bids be announced on September 21.  The court also set forth a schedule for multiple and alternative bids that concludes no later than October 7, 2015.

The court also approved revised procedures requiring the company, in evaluating buyer bids, to consider the impact of a bid on the employees and their collective bargaining agreements, and whether the bidder has reached an agreement with the affected unions.

Key Foods, which has submitted bids for a number of stores, removed certain contingencies from its bids and provided the company with evidence of financing commitments.

The court approved $100 million in loans to keep the company operating during the initial stages of the bankruptcy.  Concern was expressed by the UFCW and others that the loan budget did not include sufficient funds for employee severance.  The court approved a procedure that set aside some funds, if the proceeds from sales of stores are high enough, to potentially pay some of these claims.  However, the amount, status, and availability of those set-aside funds is not clear and will not be decided before  the end of the year or early next year.

Please know that we are tirelessly working each day, exhausting all our resources to prevent stores from closing and to save as many jobs as possible. We will continue to keep you updated on any news, in the meantime you can find all our previous Pathmark updates here.

Stay strong, now, more than ever. You have the support, the backing and the solidarity of our entire 22,500 member union.

In Solidarity,

Bruce W. Both

President

UFCW Local 1500

Update #19 From UFCW Local 1500 on A&P (Pathmark) Bankruptcy Negotiations

Image via Wikipedia

The following update is from the UFCW Local 1500 A&P/Pathmark Bankruptcy Negotiation Team:

Negotiations between the UFCW Local 1500, A&P Pathmark and the several other affected UFCW Local Unions concluded Thursday evening with no progress having made between the parties.

The following is a brief summary of the current status of the negotiations:

1.  Unions representing UFCW members working in A&P/Pathmark stores located in New York have presented a united front to the company and have made it clear that their solidarity will not be broken.  Management must deal with the New York unions together.

2.   Despite various reports from other sources outlining the companies demands, UFCW Local 1500 members should understand these negotiations will NOT be driven by any set of unacceptable demands made by the company.  The Union considers several demands "dead on arrival."

3. The company is scheduled to appear before the Federal bankruptcy judge Monday morning, November 14, 2011. The unions are prepared to meet non-stop through the weekend to reach a fair agreement.

UFCW Local 1500 will continue to keep you updated as soon as events change.  We continue to work very hard to reach an agreement that saves jobs, keeps as much of our contract with Pathmark intact and helps return this company to profitability and growth.

Members should continue to stay focused, united and informed.  Please report any rumors to your union delegate. Follow our updates on the union website and our Facebook page.  As we have all along, we will continue to disseminate information to you in compliance with the confidentiality guidelines of the bankruptcy court.

Update #18: UFCW Local 1500 on the A&P/Pathmark Bankruptcy

Update from UFCW Local 1500 on the A&P/Pathmark Bankruptcy

Representatives of UFCW Local 1500 and several other UFCW Local Unions met Monday, November 7th, with the management team from the Yucaipa Investment company. Yucaipa is one of the investors that will be part of the management team charged with turning around this company, both financially and operationally.  To be clear, Yucaipa will be playing a leading role in the turn around of A&P (Pathmark).

As of today, we know the following regarding this most recent transaction:

1. The current board of directors at A&P/Pathmark will be dissolved and replaced by a new board.  A Yucaipa representative will chair the new board of directors

2. The UFCW International Union will have a representative on the new board.

3. The company will switch from a public company to a privately owned company.

4. The company is scheduled to appear before the bankruptcy judge on November 14th to seek approval of these actions.

5. Pathmark/A&P hopes to exit bankruptcy in early 2012.

Many Pathmark members have experience with Yucaipa from previous company organizational changes.  Does this recent transaction mean the unions will no longer have to negotiate labor concessions as part of the company turnaround?


Absolutely not.   In fact, the entire agreement between A&P/Pathmark and the group of investors led by Yucaipa is contingent upon labor concessions being negotiated and approved by the membership.  Should those concessions not be negotiated and ratified, the likely end result would be the possible liquidation of the company.

As we have always stated, during negotiations we will continue to emphasize that real change must come from management and that the union members must be real partner if the company is to succeed.  Once the union negotiators feel that an agreement has been reached, it will be brought before you.  We do expect that these negotiations will conclude in the very near future.

Union leadership goals have not changed since day one of this bankruptcy. We want to reach an agreement that saves jobs, keeps much of our contract with Pathmark intact and helps return this company to profitability and growth.

Thank you for the continued confidence and support of your union leadership.  Members should continue to stay focused, united and informed.  Please report any rumors to your union delegate.  Follow our updates on the union website and our Facebook page. As we have all along, we will continue to disseminate information to you in compliance with the confidentiality guidelines of the bankruptcy court.

Nov. 4th: Update to all UFCW/RWDSU Members Working at A&P or Subsidiary Company

The following message is from the UFCW/RWDSU A&P Negotiating Team

November 4, 2011

Attention all UFCW/RWDSU Members Working at A&P or Subsidiary Company:

A&P has filed a motion in the Bankruptcy Court asking approval to enter into agreements with Yucaipa and certain note holders. Those agreements would form the basis of a plan of reorganization and an investment in A&P of $490 million by Yucaipa and those note holders. This investment is conditioned on obtaining concessionary labor agreements on a very fast time frame. The Motion is scheduled to be heard by the Bankruptcy Court on November 14, 2011.

The UFCW and UFCW Local Unions will be meeting on Monday, November 7, 2011, with Ron Burkle of Yucaipa, one of the investors in this proposed transaction. We are pleased, given his past experience in the grocery business, that he will be involved in this proposed transaction. The Monday meeting will review these investment proposals and the path forward to try to reach new labor agreements.

We will further communicate with you following the meeting with Ron Burkle and advise you of our progress.

In Solidarity,

UFCW A&P Negotiating Committee


Download the printable format below: 

A&P Seeks More Time to File Reorganization Plan

Via Supermarket News: 
http://supermarketnews.com/retail_financial/ap_plan_0803/?cid=upd
By: John Springer

WHITE PLAINS, N.Y. — A&P has asked U.S. Bankruptcy Court here for a second extension of its deadline to submit an exclusive plan of reorganization to its creditors. The retailer in court papers filed this week said the extension — to Jan. 16 of next year from a previous deadline of Dec. 31 — would assure stability through the holiday season giving it "the very best opportunity for a successful exit from Chapter 11." A&P said talks with organized labor over the renegotiation of 34 collective bargaining agreements was at a "crucial stage" while it was pushing ahead with other efforts on its operational turnaround. The exclusivity period allows company management to craft a plan to pay back creditors as opposed to creditor constituencies, which can present their own plans after the deadline. The request to extend also asks the court approve an extension of A&P's exclusive solicitation period through March 16, from an earlier date of Feb. 29.

We will continue to keep you updated, please contact us at 800-522-0456 or info@ufcw1500.org for any questions or comments you may have.

Statement from President Both; Re: A&P's Bonus Plan

Image via WikipediaThe following is a statement from Bruce W. Both, President of United Food and Commercial Workers Union Local 1500:


“On April 26th A&P submitted a revised incentive plan to U.S. Bankruptcy Court that would provide its top executives with up to $3.7 million in performance bonuses. The incentive plan replaces the one that was opposed by us and other creditors and was rejected by the bankruptcy judge in the case last month.

As we did previously, UFCW Local 1500 opposes A&P's latest plan to reward their top executives while our members continue to suffer. It is outrageous for top executives to continue seek bonuses that total up to $3.7 million while asking our members to continue to shoulder real sacrifices.

A&P continues to exhibit such indifference to the hardships of our members. Company executives that have been with this company for no more than a year in some cases are seeking to benefit from the hard work our members have put in over the last few decades in order to keep their paychecks coming. They seek to transfer money out of the pockets of our members and into their own pockets. That is not a responsible reorganization plan.

It has been over 130 days since A&P filed for bankruptcy and A&P still has no turnaround business plan, yet they continue to lobby the courts for bonuses. That is irresponsible and indicative of the management problems that have brought is to this point.

UFCW Local 1500 will continue to oppose these “Key Employee Incentive Plans” until they realize that the “Key” employees are the members of our Union working in the stores.” 

Support and join Pathmark employees on Facebook.

A Message from President Both

Image via WikipediaDecember 13, 2010

To: Local 1500 Members Employed by Pathmark
From: Bruce W. Both, President
Subject: Pathmark Bankruptcy


The Great Atlantic and Pacific Tea Company, Inc. announced on Sunday, December 12, 2010 that it filed a voluntary petition under Chapter 11 with the U.S. Bankruptcy Court.
A&P has secured an $800 million debtor-in-possession loan from JP Morgan Chase in order to keep operating.

Pathmark, which is part of A&P, will continue to conduct business as usual.

Further information will be forthcoming.