Another Postponed Hearing...

JUNE 20, 2018 UPDATE:

Notice of Adjournment of Hearing on (1) Motion of Debtors for Entry of an Order Approving Debtors Key Employee Retention Plan and (2) Motion by UFCW Local One Pension Fund and UFCW District Union Local One for Payment of Administrative Expenses Pursuant to 11 U.S.C. §503(b)(1)(A)(i) (related document(s)[260], [263]) filed by Sunny Singh on behalf of Tops Holding II Corporation. with hearing to be held on 7/12/2018 at 10:00 AM at Courtroom TBA, White Plains Courthouse (RDD) (Singh, Sunny).

 
There are media reports over the last couple of days regarding “Judge Approves Tops Store Closings”, that is not exactly what happened at court last week. The Judge approved Tops hiring a consultant to help them with the closing of a “very few” stores. What “very few” means is to be determined. Media reports are reporting  that Tops is “losing money in 1 in 8 stores” according to their original first day bankruptcy filing.  However, in some of those money losing stores they reported to the court last week that they are “working with landlords to reduce rent and in some cases square footage”.  We just have to take a wait and see to really know how many stores are closing. 
 
Here are some questions we have received from concerned members:
 
Q. How many stores are 1 and 8 and what stores are they?
A. Well, assuming they operate give or take 160 stores, that would be 20 stores. However, they are working with landlords to reduce rents like they reported to the Judge. And 20 doesn’t seem like “a very few” like they stated to the Judge.  No specific store locations or money losing stores have been identified in court. 
 
Q. When will we know what stores are closing?
A. The attorneys for Tops told the Judge that they would have their restructuring plan together by the June 21, 2018, hearing.  Between now and then can they come up with a list of stores they will close, they could but it’s a wait and see right now. 
 
Q. When will Tops be out of bankruptcy?
A. The Judge gave the creditors a timeline at the May 10, 2018, hearing. He stated that the court is pushing for “ a confirmation of bankruptcy” in September or October of this year. 
 
Q. Did the Teamster reach a settlement to their contract and pension disputes? 
A. It was reported in open court to the Judge that “tentative global settlement was reached”. However, that settlement has to be approved by the Teamster Local 264 membership and then approved by the Judge. 
 

When we have more facts and news we will let you know when we get information.  Thanks for your patience.

May 10th Tops Holding II Bankruptcy Hearing:

A day of Adjournments!

 

The bankruptcy hearing held today was very uneventful.  The only matter that was decided was a denial by Judge Drain to grant critical vendor status to Schwebel Baking Company (the producers of Tops’ branded bread, hot dog and hamburger rolls).  Schwebel’s request of having their claim paid was denied by the judge.  Schwebel was told they are a vital vendor, however, not critical.

 

POSTPONED MATTERS:

 

  1. Store Closings/Restructuring
    1. Company needs more time to work with landlords
  2. UFCW Local One Pension Fund Claim
    1. Judge adjourned matter until May 25, 2018 funding objection to allow parties to discuss matter
      1. Teamsters and Tops reached a tentative agreement was revealed
  3. Another Undisclosed Vendor’s Claim
    1. Postponed until June 21, 2018
  4. KERP- Key Employee Retention Plan (Bonus for managers)
    1. Postponed until May 25, 2018
  5. KEIP- Key Employee Incentive Plan
    1. Postponed until June 21, 2018
      1. This proposal has widespread opposition
        1. UFCW Local One
        2. UFCW Health and Pension Funds
        3. Teamsters Local 264
        4. Teamsters Funds
        5. US Bankruptcy Trustee
        6. Possible Creditor Committee Opposition

UFCW Local One postponed the TELEPHONE TOWN HALL SCHEDULED FOR MONDAY, MAY 14th at 6:30PM until we learn more from upcoming meetings that are scheduled.