The Great Atlantic & Pacific Tea Co., which hasn't paid a divident in two years, announced today that it will spend $90 million this fiscal year to build 115 stores and remodel or enlarge 150 others.
Chairman James Wood also told stockholders A&P had an operating loss of $14.9 million in the first quarter ended May 24, in contrast with a profit of $3.4 million (14 cents a share) a year ago. Total net income in a year earlier was 19 cents a share with the help of a tax-loss carryover. Sales dropped to $1.64 billion in the latest quarter from $1.66 billion a year earlier.
Shareholders authorized the company to issue another 40 million shares of stock to finance a program aimed at bolstering A&P's faltering position in the retail food market.
The management resolution raises to 83 million shares -- 80 million in the grocery chain.
With the additional authorization, A&P will be able to raise more money by issuing another 12.5 million shares of common stock to current shareholders. bA West German retailing company which already owns 47 percent of A&P's common stock, Tengelmann Warenhandelsgesellschaft, has indicated it will buy any unpurchased shares worth up to $50 million.
The stockholders also elected 14 new directors to the A&P board.
Wood said A&P plans to buld two Family Marts, 13 A&P supermarkets and 90 Plus stores this fiscal year and to enlarge or remodel about 150 supermarkets.