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Buffalo Business First reports that “as part of its ongoing bankruptcy proceedings, Tops Markets LLC would like to close a few of what it considers underperforming stores … Tops is asking the federal court to approve a plan that will allow the closing of a still-to-be determined number of supermarkets, including some in Western New York and elsewhere in its footprint.”

The story notes that “in previous filings made shortly after Tops’ Chapter 11 reorganization, company officials conceded that as many as one of every eight of its supermarkets - approximately 21 stores - are not profitable … High rents and competition were mentioned as leading factors into some of the locations’ weaker performance numbers.”
KC's View:
May have to close some stores?

Yikes. Sounds pretty self-evident to me.

I agree with MNB fave Burt Flickinger, of retail consultancy Strategic Resource Corp., who is quoted in the story as saying that “a smaller Tops has a better chance of survival.” But I also think that they need to start thinking disruptively - if they think that all it takes to survive is to be smaller with less debt, then inevitably the company will run into more problems down the road. This is a chance for survival, but the company has to make some fundamental strategic and positioning decisions, and not just focus on finances and tactics.