MONEY

Judge OKs sale of Mt. Kisco A&P and 4 others in region

Hoa Nguyen, and Peter D. Kramer
The Journal News

Six Westchester County locations — including four that will continue to operate as grocery stores —  were among 53 A&P supermarkets that had their bankruptcy sales approved by a court judge Friday.

The approvals cleared the way for the locations that will continue to operate as supermarkets, such as the A&P in Mount Kisco, to begin transforming itself into a Stop&Shop, which bought the store for $25.4 million during an Oct. 1 auction.

A&P Supermarket in Mount Kisco, Oct. 8, 2015.

Other stores that had their sales approved during the bankruptcy court hearing were the Harrison, Bedford and Port Chester supermarkets, all of which were bought by Key Food Co-Operative and are intended to continue operating as grocery stores. While Harrison was part of a group purchase, bidding for the Bedford store at auction started at $800,000, garnered 12 additional bids before being sold for $1.46 million, lawyers said. Port Chester, which had much less interest, was sold for $600,000.

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Meanwhile, two landlords, one at 1757 Central Park Ave. in Yonkers and another  in Mamaroneck, were approved to buy back their leases from A&P. The Yonkers store, which garnered an initial purchase price of $1.5 million, had 18 rounds of bidding before C.W. Highridge Plaza LLC, won with a $4.13 million offer. The Mamaroneck store, which had minimal interest, was sold for $66,000 to A & P Mamaroneck LLC.

The 53 stores that had their auction results approved by the judge Friday totaled sales in excess of $205 million for A&P. Among stores that will continue to operate as grocery businesses, all have some sort of union contract in place for workers.

U.S. Bankruptcy Court Judge Robert Drain also was close to approving another seven stores slated to continue operating as supermarkets but held off due to objections from labor leaders. The sale of those stores, representing about $19 million, was opposed by the United Food and Commercial Workers Union because buyers have no union contracts and have not made any promises of employment to current workers.

While labor leaders had initially demanded that stores slated to continue operating as supermarkets recognize unions and their collective bargaining agreements, officials recently backed off from that stance. Instead, labor leaders are only asking buyers to extend promises of continued employment to current A&P staff .

"The union is showing really pragmatism and importantly flexibility," Drain said. "It's important for the buyers to show flexibility."

Another hearing is scheduled for Monday on the matter where other store sales, such as Hastings-on-the Hudson, also will be considered. The sale of the Nepperhan Avenue store in Yonkers to CVS Pharmacy is slated for later in the month.

In the auction for the Mount Kisco store, Stop&Shop initially offered $23 million but then was outbid by Acme Markets, which had been willing to pay $24.5 million. Stop&Shop then returned with the higher offer. That sale was easily A&P's highest single-store transaction. A&P had said the Mount Kisco supermarket was the chain's most profitable store.

"I don't know what they're selling at the Mount Kisco store to make it a prized store," Judge Robert Drain said at the Friday hearing in White Plains.

"It's an awesome location," A&P lawyer Ray Schrock replied.

Pat Cummings has been going to the Mount Kisco store since it was a Waldbaum’s. The 42-year Armonk resident raised seven kids, making frequent trips to the A&P over the years. Now, with grown children, she buys a lot less, but always remembers treats for her grandchildren.

Pat Cummings of Armonk, who shops regularly at this A&P supermarket in Mount Kisco, loads her groceries into the car Oct. 8. Cummings said she also shops at the Stop & Shop in North White Plains.

Of the $9 million spent at the Mount Kisco A&P last year — it was the most successful store in the chain — Cummings said she contributed her share.

“It’s very welcoming,” she said. “It’s clean and healthy and I’m sad to see it go. I shop here because there’s no A&P in Armonk.”

Still, she shops at Stop&Shop in North White Plains, to combine a gas fill-up with shopping.

“I hear people say the prices here are higher," she said, "but I’m not that concerned with nickel and diming.”

She said she thinks the store is worth the $25 million paid.

“It’s move-in ready, like when you buy a house,” she said.

Shopper Richard Walsh of Bedford says he comes once or twice a week to the A&P supermarket in Mount Kisco because it has everything he needs.

Richard Walsh of Bedford shops at the Mount Kisco location twice a week.

“I love it,” he said. “It has pretty much everything I want. I go to Food Emporium, but they don’t carry half the stuff that this store does. It’s nice and clean and they have a good deli department.”

Walsh has grown to know the staff over the years.

“They’re great people,” he said. “And they stock everything here.”

He chalked up the store’s success to that real-estate truism — location, location, location.

“With all the towns, Bedford Hills and Pound Ridge and Bedford and Armonk, it’s the biggest store around and people travel to come here,” he said. “It’s worth it.”

Walsh said he’s willing to try Stop&Shop.

“If they continue to keep up with the quality, I’ll give it a shot and keep coming here,” he said.

Karen Parish of Pound Ridge packs up her car with groceries outside the A&P supermarket in Mount Kisco on Oct. 8. Parish said this grocery store is her main shopping location.

Karen Parish, from Pound Ridge, said the Mount Kisco A&P was her main grocery store, where she shops a few times a week. For her, it’s all about location.

“Everybody goes to Target and then they go to A&P,” she said. “Target is a great anchor for this store.”

She said she was hoping for a Wegman’s, another store that is coming to the metro area, making toeholds in Brooklyn and in Montvale, New Jersey.

“My daughter goes to school in Ithaca and I told her not to forget to bring me back this amazing stir-fry sauce they sell at Wegman’s. The quality of food at Wegman’s is unbelievable,” Parish said.

She said she’d continue to shop at the Stop&Shop when it comes in to Mount Kisco, and continue to supplement her shopping with trips to DeCicco’s and Fairway in Stamford.