Tops files for bankruptcy, with no changes expected at stores
Press Release, Tops Markets
WILLIAMSVILLE – Tops Markets, LLC today announced that it is pursuing a financial restructuring in order to eliminate a substantial portion of debt from the company’s balance sheet and position Tops for long-term success.
Tops stores across the company’s portfolio in Upstate New York, Northern Pennsylvania and Vermont 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.”
To implement the financial restructuring, the Company today elected to file for reorganization under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York. Tops is working cooperatively with certain holders of more than 65% of its Senior Secured Notes due 2022 and is continuing constructive discussions.
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.
“We are continuing to provide our customers the convenience, savings and friendly service that they expect from us,” Curci said. “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.”
The company has filed a number of customary motions seeking court authorization to continue to support its business operations during the court-supervised restructuring process, including the continued payment of employee wages and benefits without interruption. The company intends to pay vendors and suppliers in full under normal terms for goods and services provided after the filing date of February 21, 2018. Tops expects to receive court approval for all of these requests.