US: A&P CEO exits as losses mount

By: just-food.com | 21 October 2009

President and CEO Eric Claus exits
Losses rise to US$62.2m
ID sales slide 3.8%

US retailer A&P has announced the departure of its president and chief executive, Eric Claus, as it posted escalating losses yesterday (20 October).

Claus will leave the company with immediate effect, the company said. Christian Haub, executive chairman and former CEO, will once again assume the responsibilities of chief executive while a replacement for Claus is sought.

Haub is part of the family that runs A&P parent Tengelmann, the German conglomerate.

In its earnings update, A&P reported a loss from continuing operations of $62.2m, compared to a loss of $4.3m last year. Losses included a $50m increase in non cash mark to market adjustments related to financial liabilities, the company said.

Sales for the second quarter slid to US$2.1bn, down from $2.2bn last year. Same-store sales dropped 3.8%.

Adjusted income from operations totalled $6m versus $6.3m in the comparable year-ago period. Excluding non-operating items, adjusted EBITDA was $144m, down from $163m last year.

For the full press release click here, and click here for A&P's insistence that its moves on price will drive footfall.

Sectors: Retail