A&P CEO leaves as Q2 loss widens

MONTVALE, N.J. A&P has announced the departure of president and CEO Eric Claus. The news came as the company posted a wider net loss for the second quarter and a dip in sales.

Christian Haub, executive chairman of the board, has reassumed the CEO duties, a position he held from 1998 to 2005, while the company searches for a successor. 

"The current challenging economy continues to impact our business. The macro headwinds, including rising unemployment, intensifying price competition and now also deflation, are creating an even more difficult short-term economic environment," Haub stated. "Nonetheless, we have made progress in several of our formats and many of our initiatives." 

Sales for the second quarter ended Sept. 12 were $2.1 billion, compared with $2.2 billion in the year-ago period. Same-store sales dropped 3.8%. 

Reported loss from continuing operations was $62.2 million, compared with a loss of $4.3 million last year, which includes a $50 million increase in non-cash mark to market adjustments related to financial liabilities. Total net loss for the quarter was $80.3 million, or down $3.74 per diluted share, compared with a loss of $18.1 million, or a decrease of $1.97 per diluted share, in the year-ago period.

Haub noted that securing more than $400 million in new funds "was clearly done at the right time to ensure that we have the resources to address future debt maturities and to invest in our optimization strategies."