US retailer The Great Atlantic and Pacific Tea Co., which emerged from bankruptcy last year, has hired Credit Suisse to assist the company in finding additional funding.
A&P, which has faced financial difficulties in recent years, is reported to be looking at a number of options with Credit Suisse, including a sale of the company.
According to Bloomberg, A&P may “raise new capital from investors, consider new business partners or refinance the company”, according to an internal memo seen by the publication.
A&P chairman Greg Mays said in a statement that Credit Suisse was assisting the company to “identify additional funding that is consistent with our strategic planning process”.
He added: “Over the last year A&P has made significant strides in improving the company’s operations and profitability, which has resulted in a strong balance sheet with liquidity of approximately $200m and a reduction of bank debt obligations by nearly 30%. Having strengthened the core of our business, we are now focused on the capital required for future growth.”
According to the Wall Street Journal, A&P could be looking to sell itself for as much as $1bn, with potential acquirers including Kroger, which only last month agreed to a $2.5bn deal to buy Harris Teeter.
Kroger, however, did not return a request for comment and Credit Suisse declined to comment.
Other companies mooted to be interested include Ahold and Cerberus Capital Management, neither of which returned a request for comment.
