Yesterday UFCW Local 1500 released the results
of this week's auctions of the remaining, unsold A&P owned stores. While the future of many stores remains in limbo - left unauctioned or with bids on them adjourned - the Gowanus Pathmark now has a new owner. No Stop & Shop, Food Bazaar or Key Food here though. The 12th Street store, along with a Pathmark in Borough Park, has been bought up by Manichevitz (sic). Is this the
itz? If so, what are its plans for the stores? In 2014 the company was acquired by a branch of equity firm Bain Capital, and The Tablet reported its plans
to expand into a wider, mainstream market. Do these involve a move into supermarket ownership, or are other uses on the cards? Food production? Distribution? Bigger development plans? If the purchased stores do
remain supermarkets, how will this affect the stores' current employees, and how will the customer base change? Whatever the outcome, the sale is likely to surprise & alarm both workforce & shoppers at the 12th Street Pathmark. It should concern all of us who live nearby.
As the story of the A&P bankruptcy evolves, how are the beleaguered company's top brass faring? Very nicely, in fact.
While the supermarket chain begins the process of auctioning off as many individual stores as possible Thursday, it also filed court documents that revealed which executives received salaries, bonuses, consulting fees and other payments totaling nearly $13 million in the year prior to A&P filing for bankruptcy.
Nearly $4 million went to salaries, expense reimbursements, holiday pay, car allowances and other similar payments while $6 million was deposited into a trust held specifically for the benefit of five senior managers:
$2.5 million for a consulting company owned by Chairman of the Board Greg Mays, who also received an additional $2 million in board/consulting fees;
$1.5 million for Chief Restructuring Officer Christopher McGarry;
$1.5 million for President and Chief Executive Officer Paul Hertz;
$250,000 for Chief Financial Officer Tim Carnahan; and
$250,000 for Chief Strategy Officer Nirup Krishnamurthy.
Additionally, Terrence Wallock by himself and along with Dawn Wallock, both listed as directors, received $135,000 in board/consulting fees. A portion also went to bonuses with McGarry and Hertz each receiving $225,000 in 2014, Chief Merchandising Officer Eric Kanterman getting $100,000 and Carnahan receiving a $50,000 sign-on bonus. (LoHud Journal News)
Update - 10/14
Not much in the way of news, but the buyer is
itz Family LLC. The LLC was incorporated three weeks ago, and has a Borough Park address. This seems to suggest that the buyer has no connection with Bain Capital/Manischewitz. Still, workers I spoke to at the store are convinced there is a bigger real estate company behind the nominal buyer. For now, all remains conjecture.
Post a Comment