By Joseph Checkler A judge on Monday said Great Atlantic & Pacific Tea Co. could sell pharmacy assets at 12 of its in-store pharmacies to Rite Aid Corp. for $8.1 million. The approval by Judge Robert Drain of U.S. Bankruptcy Court in White Plains, N.Y., means the closings of the pharmacies will begin Tuesday and last through the beginning weeks of September. Rite Aid is buying inventory and customer-prescription information from pharmacies at 12 of the 25 A&Psupermarkets that are closing. As part of the deal, Rite Aid will notify customers in writing that their prescription information is being moved, a recommendation made by Elise S. Frejka, a consumer privacy ombudsman appointed in the case.
By Joseph Checkler Great Atlantic & Pacific Tea Co. wants fast court approval to sell off the assets of some of its in-store pharmacies to Rite Aid Corp. (RAD) for up to $8.1 million.
In a Thursday filing with U.S. Bankruptcy Court in White Plains, N.Y., A&P said Rite Aid has agreed to buy inventory and customer-prescription information from pharmacies at 12 stores that are closing. Judge Robert Drain has approved the grocer's request for a Monday hearing on the matter.
The company said the pharmacy assets must be sold quickly. "When a pharmacy is closing, the value of pharmacy related assets, particularly customer prescriptions, is unstable and the transactions must occur on an accelerated timeline to avoid permanent and significant diminution of value," A&Psaid in the Thursday filing.
A&P said it received seven bids for pharmacy assets at 22 of the 25 stores it is immediately closing, and the Rite Aid deal was the only one that exceeded the $5 million threshold that requires Judge Drain's approval. Rite Aid is paying $5.7 million for the pharmacy records at 12 stores and up to $2.3 million for the inventory at those stores. A&P filed for chapter 11 on July 19, its second bankruptcy of the decade, with plans to sell 120 and close 25 of its stores, while shopping its other roughly 150 locations. The ones that aren't bought will likely be closed, although the company hopes the coming auctions will result in more stores being included. A&P was the nation's first traditional supermarket operator, with roots dating back to 1859. At its peak a century later, it boasted some 4,200 stores. But it has faced struggling sales for decades, leading to multiple management teams, varying strategies and the 2010 bankruptcy filing---none of which stopped its downward spiral. For its latest fiscal year, through February, A&P had a loss of $305 million, more than four times its $68 million loss the previous year. A&P exited its last chapter 11 in the hands of such invest
Anybody listens to any poster here with their money and don't do their homework, deserve to lose their money!
Me too. OT. Anybody is in SAN. Bought a bunch of them today.
Will see if I can unload them around 9 when market gets back up in a week or two. If not, I can wait.
Those folks bought at 9 a couple days ago who cannot look at their screen today.
"...After four weeks of extreme volatility in Chinese stock markets and the threat of Greece being pushed out of the euro zone, asset managers took fright and hiked their cash holdings to levels NOT SINCE THE COLLAPSE OF LEHMAN BROTHERS.
Fund manager portfolios on average were made up of 5.5 percent cash, soaring to the highest level recorded since September 2008 when investment bank Lehman Brother filed for bankruptcy, according to the July Bank of America Merrill Lynch fund manager survey...."
Don't think so! Market will dictate the pricing, even though Greek situation has little to do with RAD. Sentiment of the whole market counts. Better stay with plenty of cash, because the opportunity is coming.
"....While Greece scrambles to pass legislation due Wednesday for the right to a third bailout, the euro zone is searching for ways to help the country avoid defaulting on more debt repayments.
But counting on the Greek parliament to pass measures many consider to be harsher than those rejected in an earlier referendum might be a dangerous assumption, according to Standard & Poor's head of sovereign ratings, John Chambers.
"It was a proposal that went beyond what was rejected in the referendum last week by 61 percent of the Greek population," he said. "There is very little popular backing for this.... I don't think there's any good solution at this point."
It's precisely that reasoning behind the agency's "CCC-" rating on Greek bonds, indicating a risk to commercial creditors that remains quite high, he said...."
I am a swing trade. With this environment, one needs to have 1/4 - 1/2 cash to take advantage of the chaos ( Down goes south of 300-500 points and if you don't think it won't happen, think again).
Who is Vetr? Never heard of them before, but then, what do I know anyway. NY stock exchange is still halted.