Companies place bids on several P&C stores
Syracuse University students, especially those living on South Campus, may have to find another place to shop for their groceries very soon.
The P&C Foods at 620 Nottingham Rd. is just one link in a 79-store chain that is in danger of closing.
After a rocky first three quarters of 2009, which included the closing of eight stores and a resignation of its chief financial officer, Penn Traffic voluntarily filed for bankruptcy under Chapter 11 on Nov. 18, 2009 for the third time in ten years to facilitate a sale of its assets. The company continued to operate its stores however, according to Penn Traffic’s Web site.
The Penn Traffic Company, a Syracuse-based business owns P&C, Quality Markets and BiLo Foods. Penn Traffic operates these chains in Upstate New York, Pennsylvania, Vermont and New Hampshire. The company boasts 5,700 employees, 87 percent of which belong to a union, according to its Web site.
Since the owners of P&C filed for bankruptcy, a series of events have taken place that might lead to a change in ownership.
Price Chopper, a Schenectady-based supermarket chain, made a bid on 22 stores owned by Penn Traffic, most of which in Central New York, The Post-Standard reported Dec. 15.
The owner of P&C Foods secured a small amount of cash and credit stay in business. However, Penn Traffic filed a motion with the U.S. Bankruptcy Court in Wilmington, Del., which asked the court to accelerate approval for the selling of the 22 stores that Price Chipper bid on, according to an article published in The Post-Standard Dec. 22.
Penn Traffic urged an auction of all of their stores. Tops Market also bid on Penn Traffic’s assets. Sen. Charles Schumer (D-N.Y.) and his office asked Penn Traffic and GE Capital, its biggest creditor, to give bidders time to file offers on its assets, The Post-Standard reported Jan. 4.
Tops Market released a statement that said it is still interested in acquiring some of Penn Traffic’s assets. Penn Traffic files a new motion to the bankruptcy court, asking that their emergency motion for approval be reneged to allow time for a more formal motion, The Post-Standard reported Jan. 6.
As of Monday night, a settlement wasn’t reached.
Donlin Recano & Company, Inc. is an organization that specializes in bankruptcy management, and is currently looking after Penn Traffic. According to their Web site, the bid deadline for this case is January 19 at 12 p.m. The first pre-trial hearing date is Jan. 20. The auction is currently scheduled for Jan. 21 at 9 a.m.
The sale hearing for the stores will take place Jan.25 at 11:30 a.m.
The employees and customers of the P&C just outside of SU’s South Campus are still in limbo as a result of the recent events.
Patrick McGuinness, a junior television, radio and film major, said he goes to P&C a few times a month. The store is convenient for South Campus students because it’s within a reasonable walking distance from his apartment, he said.
‘Since I don’t drive, I think it’s going to be pretty inconvenient for me,’ he said. ‘I’d have to take a bus to the nearest supermarket instead of being able to just walk.
‘I don’t even know where the next supermarket is,’ McGuinness said. ‘(P&C) is the only place I go to get groceries.’
Katie Hoefler, a junior year interior design major, said she doesn’t have a car either, and also finds P&C easy to get to by foot.
‘Obviously that’d be very inconvenient,’ she said. ‘That’s the only place I know of to go to on South Campus.’
Published on January 18, 2010 at 12:00 pm
