Supermarket chain Tops Markets will file for bankruptcy, though Mayor Jacqueline M. Izzo said she hopes the move allows the company to restructure to eliminate a substantial portion of debt without closing stores, including in Rome.
Bloomberg reported Saturday that the company is reviewing finances due to nearly $1 billion in debt and stresses on the industry.
Tops stores are continuing to serve customers with no impact to day-to-day operations. The company fully expects operations to continue as normal throughout this financial 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, Chief Executive Officer of Tops. “We believe the financing that we received from our noteholders is a vote of confidence in our business. Our operations are strong and we have an outstanding network of stores and a talented team to support them. 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, create an even more exceptional shopping experience for our customers and compete more effectively in today’s highly competitive and evolving market.”
Curci continued, “We are continuing to provide our customers the convenience, savings and friendly service that they expect from us. Our priorities, values and commitments to our customers and our communities will not change. On behalf of everyone at Tops, we thank our customers for their continued support and look forward to ensuring that their every need is met. I also want to thank our 14,262 employees and associates for their continued hard work and dedication.”
To implement the financial restructuring, the company today elected to file for reorganization under Chapter 11 bankruptcy.
Tops has received a commitment for a $125 million debtor-in-possession (DIP) term loan financing facility from certain noteholders and a $140 million DIP asset based revolving loan from Bank of America, N.A., which are expected to support the company’s continued operations during the court-supervised restructuring process.
Locally, Tops stores are located at 217 Erie Blvd. W. in Rome, as well as in Camden, Boonville and Sherrill.
Mayor Izzo said the city will reach out to the company about the Rome store, “but we didn’t want to do so prematurely.” She continued: “We will let them know we’re here and the city can help in any way.”