What was once the largest retailer in the United States is on the verge of filing for Chapter 11 bankruptcy protection. Great Atlantic & Pacific Tea, better known as A&P, may file for protection as early as this week, according to the New York Post. The company is privately owned by an investor group including Ron Burkle’s Yucaipa Companies.

A&P also owns grocery store chains Pathmark, Waldbaum’s and Food Emporium, and if the filing does happen it will be the second in five years. According to report at Bloomberg, the company has two loans totaling $270 million and a $300 million revolving line of credit that both mature in September 2019. In addition to the senior loans, the company accumulated $420 million in junior-ranking debt as part of its exit from bankruptcy in 2012.

Bids for the company’s stores were due in May as part of an auction process, but no acceptable bids came in. The likelihood now is that the stores will be sold piecemeal in what is known as a “prepackaged bankruptcy.” The company has about 300 store locations under all its brands and has hired Evercore Partners, a specialist in asset sales, to assist in the process.

An A&P spokesman told the Post:

No decision has been made ­regarding a particular outcome, and it would be inaccurate and ­irresponsible to suggest otherwise. The company is committed to continuing to serve its customers and communities as it always has and intends to keep its stores fully staffed.

Kroger Co. (NYSE: KR) is reportedly interested in some of the Pathmark store locations. Another possible buyer is Ahold, a Dutch supermarket operator that just announced a $28 billion merger with Belgium’s Delhaise Group. Ahold owns the Stop & Shop and Giant chains in the United States.

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