Great Atlantic & Pacific Tea Posts Loss, CEO Quits

MONTVALE, N.J. (AP) — Supermarkets operator Great Atlantic & Pacific Tea Co. posted a wider second-quarter loss, citing rising unemployment and price cometition, and said its chief executive, Eric Claus, is leaving the company.

The operator of the A&P and other grocery chains felt a leadership change was needed and appropriate because the company's performance did not meet expectations, said Lauren LaBruno, Great Atlantic's senior director of public relations.

Christian Haub, executive chairman, will serve as interim CEO while the company searches for a successor. Shares dropped $1.89, or 16.6 percent, to $9.48 in afternoon trading.

The company operates 432 stores nationwide under the names A&P, Waldbaum's and Pathmark, among other chains.

The grocer said it lost $80.3 million, or $3.74 per share, in the quarter ended Sept. 12, compared with a loss of $18.1 million, or $1.97 per share, a year ago.

The latest results included $57.7 million in depreciation and amortization costs.

Revenue at the Montvale, N.J., company declined to $2.07 billion from $2.18 billion.

The grocer's sales at locations open more than one year fell 3.8 percent during the quarter. Same-store sales, or sales at stores open at least a year, are a key measure of retailer performance, because they measure growth at existing stores rather than from newly opened ones.