Big V Supermarkets, Inc. Files Voluntary Chapter 11 Petition to Implement Major Financial and Operational Restructuring; Stores Remain Open and Focused on Customer Service.Business Editors FLORIDA, N.Y.--(BUSINESS WIRE)--Nov. 22, 2000 Big V Supermarkets, Inc. today announced that in order to implement a major financial and operational restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of its business, the company has voluntarily filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code Bankruptcy Code may refer to:
The filing, made today in Wilmington, Delaware Wilmington is the largest city in the state of Delaware and is located at the confluence of the Christina River and Brandywine Creek, near where the Christina flows into the Delaware River. , will enable Big V to reduce costs significantly, enhance liquidity and provide a strong foundation for future growth in the increasingly competitive supermarket industry. In conjunction with the restructuring, Big V also announced today that it will close seven stores and will depart from the Wakefern Food Corporation The Wakefern Food Corporation, founded in 1946 and based in Elizabeth, New Jersey (United States), is the largest cooperative group of supermarkets in the United States. The name "Wakefern" is a portmanteau of the founders' names (W for Louis Weiss, A for Al and Sam Aidekman, K for , a cooperative that currently provides the company with distribution, marketing and back office support. Big V operates 39 supermarkets under the ShopRite name primarily in the Hudson Valley
The Hudson Valley refers to the canyon of the Hudson River and its adjacent communities in New York State, generally from northern Westchester County northward to the cities of Albany and Troy. of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , New Jersey and Pennsylvania. All of these stores are open and conducting normal business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets . (A list of Big V stores, including those slated to close, follows this press release.) All other ShopRite stores in the Northeast are owned and operated by other members of the Wakefern co-op and are not part of Big V's Chapter 11 filing. In order to enhance its liquidity, Big V has obtained a $25 million interim debtor-in-possession financing Debtor-in-possession financing New debt obtained by a firm during the Chapter 11 bankruptcy process, Federal Bankruptcy Rule 4001 (c)(1). This financing is unique because it is secured, that is, it has priority over existing debt, equity and other claims. commitment from CIT n. 1. A citizen; an inhabitant of a city; a pert townsman; - used contemptuously. Which past endurance sting the tender cit. - Emerson. Business Credit. Upon court approval, $12 million of these funds will be available immediately to the company to help fulfill ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. obligations associated with operating its business, including payment under normal terms to suppliers and vendors for all goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. that are provided after today's filing. Employees will continue to be paid and their health benefits, as well as those of retirees, will not be disrupted dis·rupt tr.v. dis·rupt·ed, dis·rupt·ing, dis·rupts 1. To throw into confusion or disorder: Protesters disrupted the candidate's speech. 2. . Pension plans for Big V retirees are maintained independently and protected by federal law. James Toopes, President and Chief Executive Officer of Big V, said: "After careful analysis of our business operations, balance sheet, cash flow and the outlook in our operating region, we have concluded that a voluntary Chapter 11 filing is both prudent and necessary. We intend to use this court-supervised process to implement a major restructuring plan aimed at reducing our costs significantly, enhancing our cash flow and otherwise strengthening our business. We believe these actions are essential and unavoidable at a time of fierce competition in our core markets." "Even though increased competition and weakening weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. economic
conditions have affected our cash flow, Big V continues to be a
profitable company and market share leader," Mr. Toopes said.
"This means that there is a solid foundation on which to build the
company."Store Closings The store closings are expected to occur over the next two to three months. Big V management will make every effort to place as many associates as possible from the closed stores in other locations. "While this was a difficult and painful decision to make, closing these stores will result in significant cost savings, thereby strengthening the company's overall financial performance, and will allow us to focus our resources on the stores with the greatest potential," Mr. Toopes said. "We intend to work closely with government leaders, outplacement out·place·ment n. The process of facilitating a terminated employee's search for a new job by provision of professional services, such as counseling, paid for by the former employer. specialists and others to try to minimize the economic and social impact of the store closings on the affected associates and communities." Wakefern Departure Big V's departure from the Wakefern cooperative is expected to result in substantial annual cost savings, while providing Big V additional flexibility. Big V intends to work closely with Wakefern to arrange an orderly orderly /or·der·ly/ (or´der-le) an attendant in a hospital who works under the direction of a nurse. or·der·ly n. An attendant in a hospital. and smooth transition of its distribution, marketing and back office functions over the next several months. To this end, Big V has made arrangements with another major distributor, C&S Wholesale Grocers, and other product and service providers to ensure that its stores continue to be well stocked and its customers fully served. "While our longstanding relationship with Wakefern has yielded many benefits for both of our organizations, we have determined that departing de·part v. de·part·ed, de·part·ing, de·parts v.intr. 1. To go away; leave. 2. To die. 3. from the co-op is in Big V's best interest as we plan for the future," Mr. Toopes said. "This action will result in tens of millions of dollars of annual cost savings and provide Big V the independence and flexibility we need to develop and implement a long-term strategy to succeed in an extremely competitive business environment." In conjunction with the departure from Wakefern, Big V will rename Re`name´ v. t. 1. To give a new name to. Verb 1. rename - assign a new name to; "Many streets in the former East Germany were renamed in 1990" its stores (currently operating as "ShopRite") under the "Big V Supermarkets" brand. The company has engaged advertising and marketing specialists to assist in the re-branding process, which will begin shortly. "As we roll out our new name and house brands, we will emphasize our continued commitment to being the price leader and a strong service provider in our core markets," Mr. Toopes said. "We also will highlight Big V's long history and deep roots in the communities we serve. Big V's traditions of community involvement and customer appreciation will serve as our guiding principles." Big V Background Based in Florida, N.Y., privately held Big V. Supermarkets, Inc. owns and operates 39 supermarkets in New York, New Jersey and Pennsylvania. Big V currently is the largest shareholder of the Wakefern Food Corp., the largest retailer-owned cooperative in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Big V is the market share leader in the Hudson Valley region of New York. Following a recent acquisition, it also has a significant market presence in the Trenton, New Jersey area. Big V has expanded or remodeled nearly all of its existing stores over the past five years. For additional information, Big V customers and suppliers can call the company's new toll-free information line at: 1-866-333-3388.
THE FOLLOWING STORES ARE OWNED BY BIG V SUPERMARKETS, INC. AND
CURRENTLY OPERATE UNDER THE "SHOPRITE" NAME:
747 Bedford Road
Bedford Hills, NY
178 Route 52
Carmel, NY
78 Brookside Avenue
Chester, NY
460 South Riverside Avenue
Croton-On-Hudson, NY
Route 209, ShopRite Plaza
Ellenville, NY
738 Route 9, Fishkill Plaza
Fishkill, NY
176 North Main Street
Florida, NY
Route 9 & Healy Blvd.
Hudson, NY
801 Miron Lane
Kingston, NY
1955 Route 52
Liberty, NY
400 Wallkill Plaza, Route 211 East
Middletown, NY
125 Dolson Ave.
Middletown, NY
Route 17M, ShopRite Plaza
Monroe, NY
99 Hawkins Drive, Route 208
Montgomery, NY
4440 State Route 42
Monticello, NY
240 East Sandford Blvd.
Mount Vernon, NY
88 North Plank Rd
Newburgh, NY
263 Main Street
New Paltz, NY
Route 6
Peekskill, NY
960 Broadway, Route 141
Thornwood, NY
Route 32
Vails Gate, NY
859 South Road, Nine Mall
Wappingers Falls, NY
153 Route 94S
Warwick, NY
278 Tuckahoe Road
Yonkers, NY
25-43 Prospect St., Greenway Plaza
Yonkers, NY
1700 Nottingham Way
Hamilton Township, NJ
1235 Route 33
Hamilton Township, NJ
10A Rt. 23 Tri State Mall
Montague, NJ
2555 Pennington Road
Pennington, NJ
622 Route 206
South Bordentown, NJ
1750 Whitehorse, Mercerville Rd
Trenton, NJ
*675 Kidder Street
Wilkes-Barre, PA
(*The Wilkes-Barre store is scheduled to open in January 2001.)
THE FOLLOWING BIG V STORES ARE SLATED TO BE CLOSED:
281 West Bridge Street
Catskill, NY
727 Beekman Road
Hopewell Junction, NY
Rt. 9 Dutchess County & Rt. 40a, St. Andrews Rd.
Hyde Park, NY
52 Route 17K
Newburgh, NY
53-61 Dutchess Turnpike
Poughkeepsie, NY
870 Scranton-Carbondale Hwy
Eynon, PA
951 Loucks Road
York, PA
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