Exhibit 99.1

UNITED STATES BANKRUPTCY COURT

SOUTHERN DISTRICT OF NEW YORK

Debtors : The Great Atlantic & Pacific Tea Company, Inc. et al. (1)
Case Number: Jointly Administered 10-24549 (RDD)

Monthly Operating Report for the Period:

January 2, 2011 to January 29, 2011

Debtors’ Address:

2 Paragon Drive

Montvale, NJ 07645

Net Loss: $27.4 million

Debtors’ Attorneys:

Kirkland & Ellis LLP

601 Lexington Avenue

New York, NY 10022

Telephone: (212) 446-4800

Facsimile: (212) 446-4900

James H.M. Sprayregen, P.C.

Paul M. Basta

Ray C. Schrock

and

Kirkland & Ellis LLP

300 North LaSalle

Chicago, IL 60654

Telephone: (312) 862-2000

Facsimile: (312) 862-2200

James J. Mazza, Jr.

Report Preparer:

The undersigned, having reviewed the attached report and being familiar with the Debtors’ financial affairs, verifies under the penalty of perjury that the information contained therein is complete, accurate and truthful to the best of my knowledge. (2)

(1)          See Schedule 1 for a listing of Debtor by case number

(2)          All amounts herein are unaudited and subject to revision.  The Debtors reserve all rights to revise this report.

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MONTHLY OPERATING REPORT FOR JANUARY 2011

TABLE OF CONTENTS

(1)          See Schedule 1 for a listing of Debtor by case number.

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MONTHLY OPERATING REPORT FOR JANUARY 2011

CONSOLIDATED DEBTORS-IN-POSSESSION

STATEMENT OF OPERATIONS

(Unaudited — in thousands)

(1) See Schedule 1 for a listing of Debtor by case number.

See accompanying notes to consolidated financial statements.

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MONTHLY OPERATING REPORT FOR JANUARY 2011

CONSOLIDATED DEBTORS-IN-POSSESSION

BALANCE SHEET

(Unaudited — in thousands)

(1) See Schedule 1 for a listing of Debtor by case number.

See accompanying notes to consolidated financial statements.

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MONTHLY OPERATING REPORT FOR JANUARY 2011

CONSOLIDATED DEBTORS-IN-POSSESSION

STATEMENT OF CASH FLOWS

(Unaudited — in thousands)

(1) See Schedule 1 for a listing of Debtor by case number.

See accompanying notes to consolidated financial statements.

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MONTHLY OPERATING REPORT FOR JANUARY 2011

CONSOLIDATED DEBTORS-IN-POSSESSION

STATEMENT OF CASH FLOWS - CONTINUED

(Unaudited — in thousands)

ADJUSTMENTS TO RECONCILE NET LOSS TO NET CASH PROVIDED BY OPERATING ACTIVITIES:

(1) See Schedule 1 for a listing of Debtor by case number.

See accompanying notes to consolidated financial statements.

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MONTHLY OPERATING REPORT FOR JANUARY 2011

NOTES TO MONTHLY OPERATING REPORT (UNAUDITED)

1.     Background

General

The Great Atlantic & Pacific Tea Company, Inc. (“we,” “our,” “us” or “our Company”) is engaged in the retail food business.  The Company operates stores under the following trade names: A&P®, SuperFresh®, Waldbaum’s®, Super Foodmart®, Food Basics®, The Food Emporium®, Best Cellars®, Best Cellars at A&P®, Pathmark® and Pathmark Sav-A-Center®.

Chapter 11 Reorganization Cases

On December 12, 2010 the Company and all of its U.S. subsidiaries (collectively, the “Debtors”) filed voluntary petitions for relief (the “Bankruptcy Filing”) under chapter 11 of the United States Bankruptcy Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”).   The Company’s non-U.S. subsidiaries, which are deemed to be immaterial on a consolidated basis, were not part of the Bankruptcy Filing and will continue to operate in the ordinary course of business. The Debtors are authorized to operate their businesses and manage their properties as “Debtors-in-Possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court.  On December 21, 2010, the Office of the United States Trustee for the Southern District of New York (“US Trustee”) appointed a statutory committee of unsecured creditors.

We are currently operating pursuant to the Bankruptcy Filing and continuation of our Company as a going-concern is contingent upon, among other things, our ability (i) to comply with the terms and conditions of the Debtor-in-Possession (“DIP”) Credit Agreement described in Note 3 — DIP Credit Agreement; (ii) to develop a plan of reorganization and obtain confirmation under the Bankruptcy Code; (iii) to reduce debt and other liabilities through the bankruptcy process; (iv) to return to profitability; (v) to generate sufficient cash flow from operations; and (vi) to obtain financing sources to meet our future obligations.  The uncertainty regarding these matters raises substantial doubt about our ability to continue as a going concern.

2.     Basis of Presentation

Debtors-in-Possession Financial Statements

The unaudited consolidated financial statements and supplemental information contained herein represent the consolidated financial information for the Debtors as of and for the four weeks ended January 29, 2011. Non-Debtor subsidiaries are deemed to be immaterial on a consolidated basis and related income statement and balance sheet activity has been reported separately on Schedule 3 and Schedule 4 under the column “Foreign non-debtor”.

Our Company was required to apply the FASB’s provisions of Reorganizations effective on December 12, 2010, which is applicable to companies in chapter 11, which generally does not change the manner in which financial statements are prepared.  However, it does require that the financial statements for periods subsequent to the filing of the chapter 11 petition distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business.

The unaudited consolidated financial statements have been derived from the books and records of our Company. Certain financial information, however, has not been subject to procedures that would typically be applied to financial information presented in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”), and upon the application of such procedures (such as tests for asset impairment), we believe that the financial information will be subject to changes, and these changes could be material. The financial information furnished in this report includes primarily normal recurring adjustments but does not include all of the adjustments that would typically be made for quarterly financial statements in accordance with U.S. GAAP. As of January 29, 2011, all balances are subject to further review and reclassification. In addition, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted. Therefore, this report should be read in conjunction with our Company’s audited consolidated financial statements on Form 10-K as of and for the period ended February 27, 2010, for the interim periods on Form 10-Q as of and for the periods ended June 19, 2010, September 11, 2010, and December 4, 2010, respectively, and our Monthly Operating Report as of and for the four weeks ended January 1, 2011.

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MONTHLY OPERATING REPORT FOR JANUARY 2011

NOTES TO MONTHLY OPERATING REPORT (UNAUDITED)

The results of operations contained herein are not necessarily indicative of the results which may be expected for any other period or for the full year and may not necessarily reflect the combined results of operations, financial position and cash flows of our Company in the future.

Intercompany Transactions

Intercompany transactions between Debtor entities, as well as between Debtor and non-debtor subsidiaries, include, but are not limited to, intercompany cash sweep arrangements, intercompany financing arrangements, intercompany wages and intercompany inventory procurement.  The intercompany financing agreements include two loans from two of the non-debtor foreign subsidiaries to a Debtor of our Company; a 3.562% loan with an outstanding balance of principal and interest of approximately $94.0 million from A&P Bermuda and a 2.85% loan with an outstanding balance of principal and interest of approximately $0.1 million from A&P Hungry. All payments between the Debtor and non-debtor entities have been stayed at this time. The intercompany balances due to / from entities, as shown on individual entities’ balance sheets included in the accompanying consolidating balance sheet, represent the accumulation of activity over time.  These balances between Debtor entities have not been eliminated in the accompanying consolidating debtors-in-possession balance sheets. Certain intercompany transactions have been eliminated in the accompanying consolidated debtors-in-possession statement of operations.  Intercompany balances between the Debtor and non-debtor entities have been shown net in the consolidated financial statements.

Interest Expense

We recorded all interest on secured debt for the four weeks ended January 29, 2011. We recorded interest accretion expense for capital leases, self-insurance reserves, and COLI obligations; which are recorded at net present value on the balance sheet for the four weeks ended January 29, 2011. Although we have recorded interest accretion expense, we have not made a final determination as to the value of any underlying assets or the rejection/assumption of any of the obligations.  Once a determination is made, the accretion of the interest expense may change. We did not record interest expense of $3.5 million for unsecured debt which is subject to compromise for the four weeks ended January 29, 2011.  Such amounts may need to be adjusted in future periods.

Taxes and Insurance

We have received approval to pay pre-petition employee withholding obligations in addition to employment and wage related taxes, sales and use taxes, and certain other taxes due in the normal course of business through certain ‘first day’ motions. As such, we have paid the applicable taxes when due except for amounts that are in dispute.

All post-petition tax obligations to the proper taxing authorities are current.  Deferred tax liabilities of $11.1 million and $0.5 million are included within “Other accrued liabilities” and “Other non-current liabilities” in the Consolidated Debtors-In-Possession Balance Sheet, respectively.  Pre-petition amounts owed for our pro-rata portion of certain taxes for which we reimburse third parties have not been paid.

Additionally, all insurance premiums are current and all insurance policies are in force as of January 29, 2011.

Other non-current liabilities

Other non-current liabilities are comprised of $2.3 million for non-Debtor obligations for self-insurance reserves and $0.5 million for deferred tax liabilities.  These amounts are not subject to compromise under the Bankruptcy Filing.

3.     DIP Credit Agreement

In connection with the Bankruptcy Filing, on December 13, 2010, the Bankruptcy Court entered its interim financing order, among other things, permitting us to enter into a Superpriority Debtor-in-Possession Credit Agreement (as amended and restated by that certain Amended and Restated Superpriority Debtor-in-Possession Credit Agreement dated as of December 21, 2010 and further amended by that certain First Amendment thereto dated January 10, 2011, the “DIP Credit Agreement”) with JPMorgan Chase Bank, N.A., as administrative agent and as collateral agent (in such capacity, the “Agent”), the lenders from time to time party thereto (collectively, the “DIP Lenders”) and our Company and certain subsidiaries as borrowers thereunder. On December 14, 2010, we satisfied all of the conditions to the effectiveness of the DIP Credit Agreement and consummated the transactions contemplated thereunder

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MONTHLY OPERATING REPORT FOR JANUARY 2011

NOTES TO MONTHLY OPERATING REPORT (UNAUDITED)

including the refinancing in full of our Company’s and its applicable subsidiaries’ obligations under the pre-existing first lien credit facility. Pursuant to the terms of the DIP Credit Agreement:

·                  the DIP Lenders agreed to lend up to $800.0 million in the form of a $350.0 million term loan and a $450.0 million revolving credit facility with a $250.0 million sublimit for letters of credit, in each case subject to the terms and conditions therein;

·                  our Company’s and the Subsidiary Borrower’s obligations under the DIP Credit Agreement and the other specified loan documents are guaranteed by our Company’s certain other subsidiaries that are Debtors (“Subsidiary Guarantors” and, together with our Company and the Subsidiary Borrowers, the “Loan Parties”); and

·                  the Loan Parties’ obligations under the DIP Credit Agreement and such other specified loan documents are secured by a security interest in, and lien upon, substantially all of the Loan Parties’ existing and after-acquired personal and real property, having the priority and subject to the terms therein and in the order(s) entered into by the Bankruptcy Court, as applicable.

Our Company will have the option to have interest on the revolving loans under the revolving credit facility provided under the DIP Credit Agreement accrue at an alternate base rate plus 200 basis points or at adjusted LIBOR plus 300 basis points. Our Company will have the option to have interest on the term loan provided under the DIP Credit Agreement accrue at an alternate base rate plus 600 basis points or at adjusted LIBOR (with a floor of 175 basis points) plus 700 basis points. The DIP Credit Agreement limits, among other things, our Company’s and the other Loan Parties’ ability to (i) incur indebtedness, (ii) incur or create liens, (iii) dispose of assets, (iv) prepay certain indebtedness and make other restricted payments, (v) enter into sale and leaseback transactions and (vi) modify the terms of certain indebtedness and certain material contracts. The DIP Credit Agreement also contains certain financial covenants, including a minimum excess availability covenant, minimum liquidity covenant and minimum cumulative EBITDA covenant.  We are currently in compliance with all covenants.  The DIP Credit Agreement matures upon the earliest to occur of (a) June 14, 2012, (b) the acceleration of the loans and the termination of the commitment thereunder, (c) 40 days after the entry of the interim order of the Bankruptcy Court if the final order has not been entered by the Bankruptcy Court prior to the expiration of such 40-day period and (d) the substantial consummation (as defined in Section 1101(2) of the Bankruptcy Code, which for purposes hereof shall be no later than the effective date thereof) of a plan of reorganization that is confirmed pursuant to an order entered by the Bankruptcy Court. The Bankruptcy Court entered a final order approving the DIP Credit Agreement on January 11, 2011.

4.     Reorganization Items

Reorganization items represent amounts incurred as a direct result of the Bankruptcy Filing and was comprised of the following:

Professional fees for the four weeks ended January 29, 2011 were estimated and will be reconciled to actual invoices when received.

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MONTHLY OPERATING REPORT FOR JANUARY 2011

NOTES TO MONTHLY OPERATING REPORT (UNAUDITED)

5.     Liabilities Subject to Compromise

As a result of the Bankruptcy Filing, the payment of pre-petition indebtedness is subject to compromise or other treatment under a plan of reorganization. Generally, actions to enforce or otherwise effect payment of pre-Bankruptcy Filing liabilities are stayed. Although payment of pre-petition claims generally is not permitted, at hearings held in December 2010, the Court granted final approval of the Debtors’ ‘first day’ orders for authority to pay certain pre-petition claims in designated categories and subject to certain terms and conditions. This relief generally was designed to preserve the value of our Company’s businesses and assets. Among other things, the Court authorized us to pay certain pre-petition claims relating to employee wages and benefits, customers, vendors, and suppliers.

We have been paying and intend to continue to pay undisputed post-petition claims in the ordinary course of business. In addition, we may reject pre-petition executory contracts and unexpired leases with respect to our operations, with the approval of the Bankruptcy Court. Any damages resulting from rejection of executory contracts and unexpired leases are treated as general unsecured claims and will be classified as “Liabilities subject to compromise” on the Consolidated Debtors-in-Possession Balance Sheet. We will notify all known claimants subject to the bar date of their need to file a proof of claim with the Bankruptcy Court. A bar date is the date by which claims against our Company must be filed if the claimants disagree with the amounts included in our schedule of assets and liabilities (to be filed) and wish to receive any distribution in the Bankruptcy Filing. No bar date has yet been set by the Bankruptcy Court. Differences between liability amounts estimated by our Company and claims filed by creditors will be investigated and, if necessary, the Bankruptcy Court will make a final determination of the allowable claims. The ultimate amount of such liabilities is not determinable at this time.

Pre-petition liabilities that are subject to compromise are required to be reported at the amounts expected to be allowed, even if they may be settled for lesser amounts.  The amounts currently classified as “Liabilities subject to compromise” may be subject to future adjustments depending on Bankruptcy Court actions, further developments with respect to disputed claims, determinations of the secured status of certain claims, the values of any collateral securing such claims, or other events.  We expect that certain amounts currently classified as “Liabilities subject to compromise” may in fact be paid in the ordinary course as they come due.  Any resulting changes in classification will be reflected in subsequent monthly operating reports.

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MONTHLY OPERATING REPORT FOR JANUARY 2011

NOTES TO MONTHLY OPERATING REPORT (UNAUDITED)

Liabilities subject to compromise consist of the following:

Certain items that were classified as Liabilities subject to compromise within the December 2010 Monthly Operating Report have been reclassified within the above liabilities subject to compromise table.

Liabilities subject to compromise include liabilities related to pre-petition purchases and interest payments, some of which were scheduled for payment in the January 2011 period.  As a result, the January 2011 cash flows from operations were favorably affected by the stay of payment related to these liabilities.

Rejected Leases

We have rejected 98 of our leases through the bankruptcy process.  We have not adjusted the $288.1 million reserve balance associated with these leases because the amounts of any allowable claims for damages have not yet been determined.

Non-debtor Financing Agreements

Intercompany financing agreements with foreign non-Debtor subsidiaries of $94.1 million are not reflected in the above liabilities subject to compromise table as these amounts were eliminated on a consolidated basis.

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MONTHLY OPERATING REPORT FOR JANUARY 2011

NOTES TO MONTHLY OPERATING REPORT (UNAUDITED)

6.     Series A Redeemable Preferred Stock — Subject to Compromise

In addition to the $3.0 billion of Liabilities subject to compromise itemized above, our Company’s Series A redeemable preferred stock (“Redeemable Preferred Stock”) is also subject to compromise. This preferred security is not presented as a liability on the Consolidated Debtors-in-Possession Balance Sheet due to its conversion features, as required by U.S. GAAP. On November 24, 2010 our Company’s Board of Directors authorized a payment-in-kind (“PIK”) dividend on our Redeemable Preferred Stock, payable on December 15, 2010 to holders of record on November 15, 2010 (“Record Date”). Dividends are required to be PIK in the event our Company does not have the ability to pay the dividends in cash. As of the Record Date, we did not have the ability to pay the dividends in cash. The calculation of PIK dividends on our Redeemable Preferred Stock is based upon the rate defined by the original terms of the Redeemable Preferred Stock at 9.5% per annum. The PIK dividends of approximately $4.0 million are included in Redeemable Preferred Stock on the Consolidated Debtors-in-Possession Balance Sheet.

The contractual amount of dividends for the period from December 12, 2010 through January 29, 2011 was approximately $1.9 million, which was not recorded in our financial statements nor paid to investors.

The beneficial conversion feature and deferred financing fees related to the Redeemable Preferred Stock were reclassified from additional paid-in capital into the carrying value of the Redeemable Preferred Stock upon the Bankruptcy Filing.

7.     Post-petition Accounts Payable and Accrued Expenses

To the best of our knowledge, all undisputed post-petition accounts payable and accrued expenses have been paid, or are being paid under agreed-upon payment terms.

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MONTHLY OPERATING REPORT FOR JANUARY 2011

SCHEDULE 1: SCHEDULE OF DISBURSEMENTS

Certain Debtor entities make disbursements on behalf of the other Debtor entities.  Every effort has been made to accurately represent the disbursements made on behalf of each affiliated debtor.

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MONTHLY OPERATING REPORT FOR JANUARY 2011

SCHEDULE 2: DEBTOR QUESTIONNAIRE

Explanations to “Yes” answers:

(a)          Payments made on certain pre-petition liabilities and taxes were made pursuant to various ‘first day’ orders.

(b)          Certain severance payments have not been made and have been classified as part of “liabilities subject to compromise”; however, wage payments for existing employees are current.

(1) See Schedule 1 for a listing of Debtor by case number.

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MONTHLY OPERATING REPORT FOR JANUARY 2011

SCHEDULE 3: CONSOLIDATING DEBTORS-IN-POSSESSION STATEMENTS OF OPERATIONS

FOR THE FOUR WEEKS ENDED JANUARY 29, 2011

(Unaudited - in thousands)

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