According to an internal document leaked to the Wall Street Journal, the Great Atlantic & Pacific Tea Company (A&P) is looking for a buyer.
In a memo distributed to store managers earlier this week, the company’s chairman indicated that selling the company is one means of raising capital currently under consideration by senior management. The supermarket chain emerged from bankruptcy protection last year and could be worth as much as $1 billion.
A sale to a private equity firm or rival supermarket chain is the most likely choice for A&P, according to an inside source.
An spokesperson for A&P said that the company was not in distress, but was simply exploring the best way to raise new capital.
Earlier this month, Kroger (KR) announced plans to purchase regional grocery chain Harris Teeter Supermarkets (HTSI) in a $2.5 billion all-cash deal