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Tops gets the go-ahead to close stores

May 15, 2018 07:46 AM

A bankruptcy judge is giving Tops the green light to shut down some of its stores as it tries to stay in business.

Tops is trying to get out of bankruptcy but for now, no decisions have been made about how many of its 169 stores across the country are closing.

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According to court filings, 21 out of 169 Tops stores aren't making enough money. Reuters reported Tops had a debt load of more than $700 million as of April 2017.

The company filed for Chapter 11 bankruptcy in January. It asked the court for permission to close some underperforming stores.

At the time, company leaders said they had no plans of laying off employees or closing any locations but now we know that is not the case.

Bankruptcy experts believe customers and employees will see proof of that in the coming weeks with notices.

The union for Tops workers says shutting down close to 20 stores doesn't seem like "a very few" as the company told the judge.

It is also told workers the court is pushing for a "confirmation of bankruptcy" by September or October. That is when a plan to reorganize and to pay creditors can be approved.

Credits

Brennan Somers

Copyright 2018 - WHEC-TV, LLC A Hubbard Broadcasting Company

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