Tops Markets has put an end to the speculation, confirming Wednesday morning that it is filing for reorganization under Chapter 11 bankruptcy.
In a statement, Tops CEO Frank Curci said the reorganization is to eliminate debt 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," Curci said. "The company fully expects operations to continue as normal throughout this financial restructuring process."
The company operates 169 supermarkets, employing more than 14,000 employees.
“Tops has built strong market share and our stores continue to distinguish themselves by offering quality products at affordable prices with superior customer service,” he 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 has reportedly been struggling to deal with a debt load of $620 million. Curci said Tops has received commitments for $265 million in loans, which are expected to help maintain operations, including pay to employees, vendors and suppliers.
"Tops is working cooperatively with certain holders of more than 65 percent of its Senior Secured Notes due 2022 and is continuing constructive discussions," he said.
A spokesperson for the grocery chain said Tops will not be giving interviews at this time.