A&P moves out of New Orleans

MONTVALE, N.J. A&P announced today that it has agreed to sell 19 New Orleans-area Sav-A-Center stores to Rouse’s Supermarket, based in Thibadoux, La. The company also announced that two other Sav-A-Center units are being sold to other buyers including an independent food retailer.

According to A&P, under the terms of the sale, most current Sav-A-Center associates will be offered positions by new owners. Transfer of ownership of all stores is expected to be completed over an approximately six-week period.

The sale of Sav-A-Center is part of the company's efforts to exit from non-core markets and focus on retail operations in the Northeast, A&P said in a news release. Earlier this year, A&P announced an agreement to acquire Pathmark Stores, also based in the Northeast. That transaction is currently under FTC review and is expected to be completed during the second half of A&P’s fiscal year 2007.

Eric Claus, president and ceo of A&P, said, “This marks a critical step in A&P’s strategic transformation, enabling us to focus all resources on our core operations in the Northeast. We’re especially delighted with the sale of the majority of our local stores to Rouse’s, in light of our desire to sell the business largely intact for the benefit of our outstanding office and store associates. Their dedication made possible our swift return to business following Hurricane Katrina, and the ongoing revitalization of our operations since then. We’re grateful for their efforts, and pleased that the majority will now go forward under new ownership committed to the New Orleans marketplace, as that great city continues to rebuild.”