Tops Markets Files for Bankruptcy After Piling Up Buyout Debt

The owner of Tops Friendly Markets declared bankruptcy, felled by a combination of the industry’s razor-thin margins and heavy debts piled up during two buyouts.

The supermarket chain, officially known as Tops Holding II Corp., filed for Chapter 11 protection from creditors in federal court in the Southern District of New York. Tops, which has the bulk of its stores in western New York state, is seeking a $125 million debtor-in-possession loan from existing noteholders and a $140 million operating loan. The Chapter 11 filing will allow Tops to stay in business while it works out a plan to pay ...