The Western New York based grocery chain will file for Chapter 11 bankruptcy.
Tops Markets LLC announced it is restructuring in order to eliminate some of its debt. Tops has received a commitment for a $125 million debtor-in-possession term loan and a $140 million asset based revolving loan.
The company has stores in Upstate New York, Northern Pennsylvania and Vermont. The stores will not be impacted day-to-day.
In a release, Frank Curci, Chief Executive Officer of Tops said, “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.”
Tops Markets LLC employs 14,262 employees in the Northeast. The company plans to pay vendors and suppliers in full under normal terms for goods and services provided after the bankruptcy filing date of February 21st.