WILLIAMSVILLE – Facing “enormous debt” , Tops Markets is reportedly considering reorganization by filing for bankruptcy.
Union officials issued a statement to employees warning that bankruptcy may be pending.
UFCW President Frank DeRiso issued this statement:
“Over the past several months we have been meeting with Financial Advisors hired by our International Union to continually monitor the finances of Tops Markets. As reported earlier, the Company has hired Evercore (a global independent private investment firm) to help them restructure their enormous debt,” he said.
“Since mid-January, UFCW Local One has been consulted by our legal team consisting of health care, pension and 401K attorneys and an attorney that specializes in restructuring and bankruptcy filings. We have additional meetings set up this coming week to discuss more strategies to hit this situation head on.
Currently, Tops Markets is paying all contractual obligations including health, pension and 401K contributions. The contract for UFCW Local One’s 12,000 Tops members is in full effect. We are monitoring this situation daily and will keep members informed of new developments.”
Bloomberg reports the filing could come as early as next month.
Tops has 170 stores in New York, Pennsylvania and Vermont and employs about 17,000 people.