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February 22, 2018

Tops Markets Files Bankruptcy Citing Debt Levels

Tops Markets announced that it is filing for bankruptcy to eliminate a substantial portion of debt from the company’s balance sheet. We understand that this financial restructure may affect a number of Western Growers members, and if shippers are in need of guidance with their PACA Trust rights, please contact Western Growers Trade Practices Department.

As reported by The Produce News, Tops Markets LLC elected to file for reorganization under Chapter 11 of the bankruptcy code. Tops is working cooperatively with certain holders of more than 65 percent of its senior secured notes due 2022 and is continuing constructive discussions.

Tops has received a commitment for a $125 million debtor-in-possession term loan financing facility from certain noteholders and a $140 million DIP asset based revolving loan from Bank of America N.A., which are expected to support the company’s continued operations during the court-supervised restructuring process.

The company has filed a number of customary motions seeking court authorization to continue to support its business operations during the court-supervised restructuring process, including the continued payment of employee wages and benefits without interruption. The company intends to pay vendors and suppliers in full under normal terms for goods and services provided after the filing date of Feb. 21, 2018. Tops expects to receive court approval for all of these requests.

Any affected members are encouraged to reach out to Matt McInerney at (949) 885-2263 or Ken Gilliland at (949) 885-2267.