Penn Traffic Delays Closings

Ever since Penn Traffic declared bankruptcy for the third time last month and announced it would be selling its grocery stores and other assets, an uneasiness over what will happen to the markets it operates has accompanied the situation.

So much so that even U.S. Sen. Charles Schumer, D-N.Y., has gotten involved in the proceedings.

On Monday, Schumer announced that his request was met by GE Capital, Penn Traffic's creditor, to extend its deadline for bids to sell as many of the company's grocery stores as possible. Previously, the deadline to submit bids had been Monday. However, late Sunday night GE Capital confirmed that the deadline to submit bids would be extended to Jan. 20 or 21 with the goal of having a deal wrapped up by Jan. 31.

Schumer announced that GE Capital has agreed to pursue a schedule for bids that corresponds to Schumer's request to keep Penn Traffic open and operating through the end of January. Schumer said he called the chief executive officer at GE Capital last week to request flexibility on credit terms to allow the extra time so the company can sell as many stores as possible to bidders that would keep them operating.

''This welcome decision by GE Capital to extend the deadline for bids means thousands of New York workers can breathe a little easier through the Christmas season as Penn Traffic identifies a buyer that will keep open the maximum number of stores,'' Schumer said. ''This is very good news for both workers at these stores and for upstate consumers, who deserve good choices and food shopping options. It means more time to find a bidder that will keep more stores open, potentially saving thousands of jobs.''

Schumer said previous to this new deadline there were indications that GE Capital was considering liquidating the stores, which would likely have led to 6,000 layoffs right around Christmas. Bids have emerged for Penn Traffic-owned stores across New York, and this will give the company more time to work out the details of those bids to ensure the maximum number of stores are kept open.

It has been reported that bids to purchase Penn Traffic assets have been filed by Price Chopper and Tops Markets. Price Chopper has offered $50 million for 22 of Penn Traffic's stores and Tops Markets has offered $90 million for all 76.

Penn Traffic operates supermarkets in Upstate New York, Pennsylvania, Vermont and New Hampshire under the P&C Foods, Bi-Lo Foods and Quality Markets names. The company operates 13 Quality Markets in Western New York - Attica, Dunkirk, Ellicottville, Falconer, Frewsburg, Jamestown, Lakewood, Lockport, Mayville, Randolph, Silver Creek, Westfield and Amherst.

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cattpat
12-22-09 10:25 PM »Report Abuse	Better hope Price Chopper does buy them, cause they are not know for chopping prices. Folks in the north country are crying the blues because of Price Chopper buying stores up there and then raising all the prices!!!
NYNana
12-22-09 1:24 PM »Report Abuse	Don't forget, this senator also is working on getting the bpu job done, one the residents of Jamestown CAN NOT afford. Time for him to retire, he is showing signs of dementia.
dale48
12-22-09 8:44 AM »Report Abuse	Senators sold their votes on health care reform for millions of dollars for their states, while Senator Schumer is busy working on keeping Quality Markets going an extra month. Prioritize Senator, prioritize.
danyay
12-22-09 8:40 AM »Report Abuse	How is this fair to the companies that submitted bids before the deadline and followed the rules? The Buffalo News reports Tops bid $90 million for all 79 stores, including Quality Markets. What will become of that bid now that the deadline is extended? A liquidator comes along, sees their public bid, and thinks that the parts are worth more than the chain as a whole? Chucky Schmucky Schumer, never one to interfere with private enterprise and make life miserable for his state's residents.
zedman
12-22-09 8:11 AM »Report Abuse	Yeah, how dare Sen Schumer try to get a lender and business to keep people working through Christmas and a bit beyond. Shame on you Senator. Close the stores, put the people out of work. let's make New York State a little worse. Does that make RADCON happy?
RADCON
12-22-09 8:06 AM »Report Abuse	schmucky chucky schumer must be getting some $$$$ for his nose to be involved.

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