Struggling A and P Takes on CEO After Another Poor Quarter

The Great Atlantic and Pacific Tea Company GAP (NYSE), often referred to as as supermarket chain A&P, has appointed Sam Martin its new CEO and Chairman. The company has been struggling. Martin who just left his position as COO for Office Max replaces Ron Marshall as the CEO. Marshall, according to the press release,

left his position just after five months at the helm.

The struggling retailer is faced with another key management change at the top while trying to right itself. Just yesterday as part of the CEO announcement the company also announced its quarterly earnings which were far from reassuring. The firm reported a fiscal quarterly loss of $122 million. While the selection of a CEO at the firm has been an example in how CEO selections should not be made, Martin’s selection may actually be the medicine the firm needs.

Martin, who some speculated wanted to become the CEO of Office Max and may have known he was going to be passed over, has the requisite qualifications to help The Great Atlantic and Pacific Tea Company right itself has both high level operational expertise and a background in the food/supermarket business. Prior to his stint as COO at Office Max, which began back in 2007, Martin served as an executive at Wild Oats before it was acquired by Whole Foods. Prior to his work with Wild Oats Martin served with a number of other supermarket/food chains (Shopko stores and Fred Meyer).

Supermarket chains in general have been struggling during the economic recession as consumers seek out new ways to reduce their food bills and still get convenience shopping. Martin has a real challenge ahead of him but he appears to have the right type of expertise and business acumen to make a go of it. Keep a close eye on the company there may be some positive surprises over the next year.

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Struggling Borders' CEO Resigns

Borders Group BGP (NYSE), the struggling book retailer,

announced today that its CEO, Ron Marshall, has resigned as CEO and director of the firm effective immediately. Marshall was appointed CEO just over a year ago. Borders has been struggling for some time and has been facing increasing pressure from activist investors (Pershing Square Capital). At the same time the company has appointed EVP and Chief Merchandising Officer, Michael J. Edwards, as the interim CEO. According to a story by Mark Clothier for Bloomberg,

Borders… last reported an annual profit in 2006, has seen revenue drop for the past three years as consumers spent less on books and non-essential items amid declining home values and rising unemployment.

Marshall’s resignation comes after the company announced very disappointing sales news. According to a blog story in The New York Times,

Last week, the company announced a nearly 14 percent decline in sales over the 11-week holiday period ending Jan. 16, compared with same period last year. The company was also forced to issue a statement denying rumors that it had extended the time it took to pay bills to small publishers.

Rumors abound that Marshall’s comes as he is about to take a new CEO position.The interim CEO has a very difficult task ahead of him. Edwards has extensive retail experience but he has never faced a more daunting task than the problems currently faced by Borders. The search for a new CEO will need to find a possible miracle worker.

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Slate's Big Money (update 1/27)