Reuters reports that as the bankrupt Great Atlantic & Pacific Tea Co. (A&P) works its way through reorganization, Tengelmann - the German company that owns 38 percent of its stock - plans to bail out of its position in the troubled retailer.
"We hope that A&P can be led out of its insolvency. But we do not believe that we will be significant shareholders after the process ends," Tengelmann Chief Executive Karl-Erivan Haub told reporters last week.
"A&P is currently in free fall," Tengelmann's Chief Financial Officer Jens-Juergen Boeckel added.
A&P has been in bankruptcy protection since December, and has in recent years gone through a series of management changes in its top ranks
"We hope that A&P can be led out of its insolvency. But we do not believe that we will be significant shareholders after the process ends," Tengelmann Chief Executive Karl-Erivan Haub told reporters last week.
"A&P is currently in free fall," Tengelmann's Chief Financial Officer Jens-Juergen Boeckel added.
A&P has been in bankruptcy protection since December, and has in recent years gone through a series of management changes in its top ranks
- KC's View:
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Rats abandoning a sinking ship?
Maybe. But I have to believe that if some other retailer - or equity firm, like a Yucaipa Cos. - comes in, the company will be better off. Though it hard to imagine that anyone would want to fix a disaster that seems to have been created not by the people on the front lines, but by people at the top - especially ownership - who seem to have shown a singular lack of patience, innovation, marketing savvy and competitive brio.
