Seven unprofitable stores were closed as a result of this transaction.

The bookstore's owner, in turn, believes the new rent will be so high as to make the store unprofitable.

"A retailer in Chapter 11 has to get rid of its unprofitable stores," he said.

A&P agreed only to short leases so that it could quickly close unprofitable stores.

They said, however, that unprofitable stores would be eliminated over a period of time, to allow better use of assets.

"Without the distraction of unprofitable stores, they will be a force in the tailored clothing business."

It plans to close at least 500 unprofitable stores by the end of January.

The company is likely to close other unprofitable stores during its reorganization.

"If I'm a retailer, do I have unprofitable stores that need to be closed?"

Leaseback agreements were bought out and the company began closing unprofitable stores.