Montvale, N.J. The owner of the struggling Great Atlantic & Pacific Tea Co. supermarket chain said in a news release Thursday it has completed the first phase of its turnaround plan by cutting jobs and reducing costs. It also announced that its second-quarter loss doubled in the period as revenue continued falling.
A&P lost $153.7 million in the three-month period ending Sept. 11, which was steeper than its loss of $80.3 million in the prior year. Revenue fell 7% to $1.92 billion, from $2.07 billion.
The company’s CEO Sam Martin said the quarter's results were "disappointing" but said the company's turnaround plan will help improve business. A&P also said it has cut headcount to save about $10 million a year. It is also targeting reducing general and administrative expenses by about $40 million a year.
Earlier this month, the company reported it was in talks to advisory firms to figure out how best to deal with its debt burden. It did not mention those talks in the new release. However, it said it has created a new executive management team, including Martin, who recently came to the company from OfficeMax, where he was COO.
The company, based in Montvale, N.J., also said it is negotiating with its banks and new lenders to add a new-money term loan to its asset-backed facility. The company said it is also contracted to sell seven stores in Connecticut. It recently closed 25 stores.