Tops Markets filed for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York.
The regional supermarket is working cooperatively with certain holders of more than 65% of its senior secured notes due 2022 and is continuing constructive discussions. It has also received a commitment for a $140 million DIP asset based revolving loan from Bank of America and a $125 million DIP term loan facility from certain noteholders, which are expected to support the company’s continued operations during the court-supervised restructuring process
“Tops has built strong market share and our stores continue to distinguish themselves by offering quality products at affordable prices with superior customer service,” said Frank Curci, CEO of Tops. “We are now undertaking a financial restructuring, through which we expect to substantially reduce our debt and achieve long-term financial flexibility. This will enable us to invest further in our stores and compete more effectively in today’s highly competitive and evolving market.”
Tops filed a number of customary motions seeking court authorization to continue to support its business operations during the restructuring process, including the continued payment of employee wages and benefits without interruption. The company intends to pay vendors and suppliers in full under normal terms for goods and services provided after the filing date.
Williamsville, NY-based Tops Markets expects operations to continue as normal throughout the restructuring process.
