Former supermarket operator Great Atlantic & Pacific Tea Co. has agreed to sell back to its landlord the lease of its now-vacant Pathmark store in Dix Hills for more than $400,000, court records show.
LG Other Associates LLC, based in Hewlett, is looking to pay $400,000, plus make a $47,000 payment to return rent paid by A&P in November, in exchange for terminating the lease of the Dix Hills Pathmark, according to a filing Monday with the U.S. Bankruptcy Court in White Plains.
LG Other Associates did not respond to requests for comment. A hearing to approve the sale is scheduled for Jan. 22 in the White Plains court.OpinionReader essay: Loss of a supermarket cuts deepStoryThousands worry as Waldbaum's, Pathmark vanish StoryKing Kullen to open in ex-Waldbaum’s spot
“Landlords will buy back leases if they think leases proposed to be assigned are at under market rental rates,” said John Westerman, a bankruptcy attorney based in Uniondale who represented companies and landlords who purchased leases from A&P. He said landlords can then lease the property out at higher market rates to a tenant of their choosing.
A&P filed for Chapter 11 bankruptcy protection from creditors in July. So far, 34 Long Island A&P-owned stores have been bought or bid on, five were closed in October, and 12 other stores remain unsold. All the stores ceased operation by A&P in November.
Separately, A&P received earlier this month a $1 million offer from Mount Vernon-based K-50-15 Corp., an affiliate of Foodtown operator PSK Supermarkets, for its Pathmark intellectual property assets. Those included the Pathmark logo, the Pathmark.com domain name, and Pathmark Twitter and YouTube accounts.
Last month a bankruptcy judge approved a bid from PSK Supermarkets for the Waldbaum’s in Rocky Point and a Pathmark in Manhattan, for a total of $19.4 million. Foodtown already operated five stores on Long Island, according to its website.