Exhibit 99.1

                                        For further information:
                                        Jim Fingeroth, Wendi Kopsick
                                        Kekst and Company
                                        (212) 521-4800

FOR IMMEDIATE RELEASE
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                   GRAND UNION AGREES ON RESTRUCTURING TERMS

            WAYNE, NJ, March 30, 1998 -- The Grand Union Company announced today
that it has entered into an agreement in principle on terms of a capital
restructuring plan with an unofficial committee of holders of its Senior Notes.
The Company has been advised that the committee represents more than $275
million of the Company's nearly $600 million in notes.

            Among other conditions, the agreement in principle is subject to
formal documentation and the Company obtaining a new $300 million credit
facility on acceptable terms. The new credit facility would replace an existing
$250 million credit facility.

            Under terms of the proposed restructuring plan, trade and business
creditors will be unimpaired and will continue to be paid in the ordinary
course. The proposed plan also calls for the Company's Senior Notes to be
cancelled and exchanged for substantially all of the reorganized Company's
common stock. The Company's existing common stock will be cancelled and, subject
to obtaining the requisite consent of the Senior Noteholders and the holders of
the Company's preferred stock, exchanged for new five-year warrants to purchase
approximately 2% of the new common stock at an exercise price of $19.82 per
share. Under the proposed plan, the Senior Noteholders have proposed that the
Company's existing preferred stock will be cancelled and the holders will be
offered the right to receive cash or new common stock.

            It is intended that the restructuring will be effected through a
voluntary prepackaged Chapter 11 filing. If all preliminary conditions are met,
the Company anticipates the commencement of solicitations of consent by the end
of April with a Chapter 11 filing approximately 30 days later.

            Grand Union currently operates 222 retail food stores in six
Northeastern states. Sales last year totaled $2.3 billion.