East Coast grocery giant the Great Atlantic & Pacific Tea Co. Inc., better known as A&P, managed to emerge from bankruptcy reorganization with its three single-employer pension plans fully intact – a development which the PBGC applauded, especially in light of the recent shift of pension responsibilities hinted to in the American Airlines bankruptcy.
"While A&P continues to face business challenges, we want to acknowledge their ongoing commitment to maintain these pensions," said J. Jioni Palmer, PBGC's director of communications and senior advisor. "Bankruptcy forces tough choices, but plenty of companies go through it and keep their plans."
A&P completed its restructuring and emerged from bankruptcy on March 13, with new management and updated stores, as well as a modified pact with its unions. The company operates 230 stores and has approximately 34,000 employees.
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