A&P supermarket chain to close 25 stores

Grocery store operator Great Atlantic & Pacific Tea Co. Inc. said today that it will close 25 of its 429 stores as it implements a turnaround strategy.

The Montvale, N.J.-based company operates 30 stores in the Philadelphia area under the A&P, Pathmark and Superfresh names. The 25 affected stores, to close by later this year, are in Pennsylvania, New Jersey, Connecticut, Maryland and New York, but the company would not identify specific locations, spokeswoman Lauren La Bruno said. She said 2,000 employees will be impacted.

"However, we will help our affected associates pursue other positions across the company should open positions be available," La Bruno wrote in an e-mail.

Great Atlantic last month announced the appointment of a new CEO, former Office Max executive Sam Martin. He replaces Ron Marshall, who took over as A&P's CEO in January. For the quarter that ended June 19, A&P reported a loss of $122.6 million, compared with a loss of $65.2 million a year earlier.

Company shares were down 12 cents, or 3.93 percent, to $2.93 in midday trading on the New York Stock Exchange.    - Reid Kanaley