Penn Traffic files for bankruptcy, plans to sell its P&C stores

[Dennis Donovan]

http://www.syracuse.com/news/index.ssf/2009/11/penn_traffic_files_for_bankrup.html



Syracuse, NY -- Two bankruptcy reorganizations and the mass closing of stores and warehouses during the past decade could not save the parent company of the P&C Foods supermarkets chain.

Syracuse-based The Penn Traffic Co. has filed for bankruptcy for the third time in 10 years. This time, it plans to sell all or most of its assets, consisting mainly of 79 supermarkets in four states, by Jan. 10.

Penn Traffic made the announcement Wednesday afternoon, days after troubling flares were sent up to investors and customers in the form of missed loan payments and empty store shelves. The company made the filing in federal bankruptcy court in Wilmington, Del.

Penn Traffic plans to continue to operate its stores under court protection from its creditors while it seeks a buyer. It might already have a buyer in mind, considering it has locked in a date. “We intend to continue to work closely with our vendor partners to provide the fresh products and good value that our customers have come to expect from our stores,” said Gregory J. Young, Penn Traffic’s president and chief executive officer.

The company will also continue to pay its 5,700 employees, who draw $2.3 million each pay period, and continue benefits, according to documents it filed Wednesday with federal bankruptcy court.

The Syracuse-based grocer is expected go before a U.S. Bankruptcy Court judge in Wilmington, where it is incorporated, Thursday. It will seek approval to make arrangements with its lenders for money to operate. Penn Traffic reported to the court and the federal Securities and Exchange Commission that it has assets of $150.4 million, while its liabilities are $136.9 million.
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This saddens me greatly. P&C was my first "over the table" employer in 1982. I was still in high school and, despite being hired as a part-time bagger working for minimum wage, I got FULL, FREE health insurance coverage that was, frankly, BETTER than I have from my full-time job now.

Thanks again P&C for being a good employer.:(

[wtbymark]

1. yea..Wegman's killed em in NY

grew up next to a P&C, Wegman's came out with better stores (the 1st of the superstores with restaurants and bistros in them)at just the right time, about 20 years ago.

[Dennis Donovan]

3. It didn't quite pan out that way here in my town...

Despite Wegman's opening one of their superstores here, BOTH P&C's held their own. It was the failure of the chain as a whole that did in the local stores.:(

[Ruby the Liberal]

2. Ironically, I had to wonder if the ever-soaring healthcare insurance costs

didn't contribute heavily to their financial burdens.

Amazes the life out of me that businesses aren't behind reform. Mind boggling.

[Rhiannon12866]

4. Apparently, it's not a good time for supermarkets...

SCHENECTADY, N.Y. — Services were held here last week for Lewis Golub, the former chairman of Price Chopper Supermarkets, who died Oct. 18 at age 78.

http://subscribers.supermarketnews.com/retail_financial/obituary-lewis-golub-1026/wall.html?return=http://subscribers.supermarketnews.com/retail_financial/obituary-lewis-golub-1026/

[Dennis Donovan]

5. 'S okay - I liked Hannaford better...

;):hi:

BTW - doesn't "Golub" sound like one of those evil multinational corporations that James Bond's always trying to bust for stealing atom bombs or the Space Shuttle? :D

[Rhiannon12866]

7. Exactly when did you ever go to Hannaford?!

:silly:

And, to me, "Golub" sounds like the word you'd use when describing a noisy and difficult swallow... x(

Do you still have my Advantage card or did the puppy eat it? :shrug:

[Dennis Donovan]

8. Puppy eats his toys and my coffee table, but not plastic...

;)

[Rhiannon12866]

9. You're right.

And paper products. But somebody taught him that... ;)

[Dennis Donovan]

10. You meant YOUR pup?

I thought you meant my pup:

Ironically, his name is also Jack (he came with the name;)).

[Rhiannon12866]

11. Charlie taught Jackie to eat paper, especially kleenex.

I think the money was his own idea. ;)

[Dennis Donovan]

12. Chuckiemutt was a mischievious tutor, that's for sure...

;)

[Rhiannon12866]

14. Jackie misses him, that's for sure.

And so do I, especially when I open a slice of cheese. ;(



mischievous :evilgrin:

I'm chopping onions... ;(

[AllentownJake]

6. I wouldn't buy a gift card at any retailer other than the really safe ones this year

for any friend this Christmas, and if I got one, I'd spend it the 26th.

[upi402]

13. bummer, i see FOR LEASE signs all over where long time business' were

Until we make stuff and sell it to other countries, this will continue. Nobody has jobs, we have no money to buy, more business' close - ad infinitum.

I blame the pro NAFTA and GATT "Democrats". Without the corporatist infiltration into the Dem party, the Repukes would never have been able to rape America like this, we would have an opposition party.

We need re-regulation of trade and tariff. But the TV propaganda machine will keep us from that even IF the "Democrats" see the light.