Newsday reports that Penn Traffic is selling its wholesale business to C&S Wholesale Grocers for $43 million. According to the story, “the all-cash transaction … includes the sale of about $13 million in accounts receivable to C&S (and) is expected to close by the end of the year. The wholesale operation supplies more than 120 independent supermarkets in New York and Pennsylvania, accounting for $210 million, or about 20 percent, of Penn Traffic's revenues in fiscal 2008. ”
The deal will leave financially troubled Penn Traffic with a core business of 91 retail stores, and in a better economic position to focus on that business.
The deal will leave financially troubled Penn Traffic with a core business of 91 retail stores, and in a better economic position to focus on that business.
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