Tops closes 10 stores, restructures following Chapter 11 filing
Williamsville, N.Y.-based Tops Markets said it has received court approval to shutter 10 underperforming stores, according to a news release. Another step in its financial restructuring process, the move was part of its reorganization and a related disclosure statement with the U.S. Bankruptcy Court for the Southern District of New York.
The company identified the stores through a comprehensive review as it entered into its restructuring plan after filing Chapter 11 in February. The plan incorporates Tops’ court-approved agreements with its union, which is said to represent 85 percent of its employees. The agreement with the union will see an underfunded pension plan replaced by a 401K option, which could save as much as $180 million in pension fund liabilities for Tops.
"The filing of our plan moves Tops another step closer to a successful completion of our financial restructuring," said Frank Curci, CEO of Tops. “We are pleased to submit a plan that will establish a sustainable capital structure and provide the financial flexibility to create an even more exceptional shopping experience for our customers and emerge from this process as a stronger competitor.”
Tops operates 169 supermarkets plus an additional five via franchisees under the Tops banner. A hearing to consider approval of the disclosure statement is slated for Sept. 27. Following its approval, Tops said it will seek confirmation of the plan on Nov. 8.