22Aug2010
A&P Names Brace CAO
Follows announcement of closing of 25 stores.
MONTVALE, N.J. – August 20, 2010 “” The Great Atlantic & Pacific Tea Company, Inc. (A&P) (NYSE:GAP) has named Frederic F. (“Jake”) Brace to the new position of Chief Administrative Officer (CAO), effective immediately. In this role, he will oversee A&P’s Finance and Accounting, Real Estate and Information Systems departments, reporting to President and Chief Executive Officer Sam Martin.
A&P President and CEO Sam Martin said, “Over the last year, Jake Brace has provided critical insight to the Company on a range of important issues as a member of our Board of Directors. I am pleased that he has agreed to join A&P’s executive management team and am confident that his strategic and financial expertise and successful turnaround experience will be extremely valuable as we take the steps necessary to position the Company for a strong future.”
Mr. Brace, 52, has more than 25 years of financial management, strategic planning and operational experience. During a 20-year career at United Airlines, he held a variety of executive management positions, most recently as United’s Executive Vice President and Chief Financial Officer from 2002 until his retirement in 2008. In that capacity, Mr. Brace played a critical leadership role in United’s successful turnaround. Mr. Brace also served in a number of financial management positions with American Airlines. Mr. Brace holds a B.S. degree in Industrial Engineering from the University of Michigan, and a Master’s degree in Business Administration from the University of Chicago.
This appointment is the latest addition to the new executive team currently being assembled under President and CEO Sam Martin, and complements the appointment of Paul Hertz as A&P’s EVP of Operations, which was announced by the Company earlier this week.
A week earlier A&P announced that it will close 25 stores in five states as it begins the implementation and execution phase of its comprehensive turnaround. The affected stores include locations in close proximity to other Company stores, those facing real estate and cost issues, and underperforming non-core stores. The store closures are expected to be completed in the Company’s fiscal third quarter.
A&P President and Chief Executive Officer Sam Martin said, “As part of our turnaround, we have initiated a detailed review of our store footprint and have decided to close these 25 locations. While this was a very difficult decision that will unfortunately impact some of our customers, partners, communities and employees, these actions are absolutely necessary to strengthen A&P’s operating foundation and improve our performance going forward. We will help our affected colleagues pursue other positions across the Company should open positions be available.”
As part of the store closure process, the Company will encourage loyal customers to shop at its other stores within or in close proximity to their communities.
Mr. Martin continued, “We are moving forward aggressively to advance our turnaround and position A&P for a strong future. Even as we reduce our store base and drive efficiencies across our Company, A&P continues to remodel stores and take other important steps to enhance our customers’ experience across our store formats. To this end, we are set to re-open two newly remodeled stores in the coming month.”
The Company’s operational and revenue-driven turnaround initiative, which was announced late last month, is designed to generate sustained profitability and cash flow, drive sales growth, restore competitive margins to the business and strengthen the foundation of the Company for the long term.
