UFCW Local 464A President, John T. Niccollai Comments on the Latest A&P Developments

Taking note of the recent appointment of Ron Martin as President and CEO of The Great Atlantic & Pacific Tea Company and A&P’s weak first quarter financial performance, Local 464A President, John T. Niccollai, signaled his cautionary hope that prospects at the iconic food retailer will improve.

The A&P Board of Directors announced, at a meeting Friday July 23, that Samuel Martin would replace Ron Marshall as President and CEO. This announcement was coupled with the release of fiscal first quarter 2010 results showing a $122.6M loss and a decline of 7.2% in same-store revenues. Said Niccollai,

“While I am deeply disappointed by the financial performance of A&P, I am uplifted by the appointment of Sam Martin as the company’s new CEO. He has vast experience as an operating officer within the supermarket industry. Martin came out of Wild Oats Markets and Fred Meyer, Inc., both notable food store operations.”

The Local Union President went on to say that the problem at A&P, through the years, is directly related to the fact that previous CEOs lacked in-depth skills in the areas of merchandising and operations.

“I have never seen a bean counter (Financial Officer), turn a troubled company around. All the bean counters know how to do is cut the workforce, compact the company and reduce sales.”

Experts in the banking and financial communities fear a problem with A&P concerning future liquidity, and the ability of the Company to meet its financial obligations as they come due. Niccollai indicated that he looks forward to meeting with President and CEO Martin and has pledged his cooperation in helping to turn A&P around and put it back on the road to recovery. Niccollai said A&P presently employs over 40,000 workers.

“Everyone recognizes that we are living in troubled economic times. We must do our best to protect workers and their jobs.”