Excerpt:
The fall into bankruptcy court by the Great Atlantic & Pacific Tea Co. is the culmination of years of decline but creates an opportunity for its competitors and could mean further consolidation in the supermarket industry.
The nation’s oldest grocer filed for Chapter 11 bankruptcy protection Sunday after years of struggling with enormous debt, falling sales and rising competition from low-priced peers.
[…]A&P, like most grocers, is struggling with the weak economy, reduced spending by consumers and intense competition. The company said aggressive competition from nontraditional food retailers like warehouse clubs, discount chains such as Wal-Mart Stores Inc., and dollar stores have compounded the problem.
[…]It is also struggling with pension costs, lease costs for store locations it has closed, and a contract with C&S Wholesale Grocers Inc., which provides the majority of its inventory, which it has been unable to negotiate down to lower costs.
[…]A&P also has one of the most heavily unionized work forces in the business, with 95 percent of its workers covered under collective bargaining agreements. It said in its filing it would seek to work with the unions to lower those costs.
I wonder why Wal-mart is doing so well compared to A&P. Oh I know – Wal-mart isn’t 95% unionized. In fact, Wal-mart opposes unions, because employers should not be forced to pay dues to Democrat union bosses in order to keep what they earn by the sweat of their own brow.
WINTERY KNIGHT 