In western New York, the Post-Standard reports that Tops Markets has made a “generous” bid for the assets of bankrupt Penn Traffic Co., and will formalize the offer later this week.
A federal bankruptcy judge is scheduled to begin sorting out the various scenarios on Friday. The Post-Standard offers the following summation of where things stand at the moment:
“Syracuse-based Penn Traffic, the parent of P&C Foods and employer of 5,700, is leaning toward breaking up and selling off the company piecemeal at a court-ordered auction. Its tapped a specialist in the liquidation of major retail chains and is asking the court for an emergency order to proceed with the auction, quickly.”
Meanwhile, “Schenectady-based Price Chopper wants 22 of those stores, including 13 in Central New York. if that bid wins, the rest of Penn Traffic will be dissolved, sold to any and all comers, underperforming stores in poorer parts of cities and rural communities shuttered and sold at auction. In documents filed Tuesday, Penn Traffic noted that Friday is the final hearing on Price Chopper's bid to buy those 22 stores.
“The unions representing Penn Traffic are still hoping for a well-heeled hero to swoop in and save the company and the union jobs. They've swayed a powerful U.S. senator and furiously filed motions to block the ‘stalking horse’ bidder -- the one who wants to liquidate the chain -- and Price Chopper's bid of $54 million for just 22 stores. They say there's still time for bidders for Penn Traffic's assets.”
A federal bankruptcy judge is scheduled to begin sorting out the various scenarios on Friday. The Post-Standard offers the following summation of where things stand at the moment:
“Syracuse-based Penn Traffic, the parent of P&C Foods and employer of 5,700, is leaning toward breaking up and selling off the company piecemeal at a court-ordered auction. Its tapped a specialist in the liquidation of major retail chains and is asking the court for an emergency order to proceed with the auction, quickly.”
Meanwhile, “Schenectady-based Price Chopper wants 22 of those stores, including 13 in Central New York. if that bid wins, the rest of Penn Traffic will be dissolved, sold to any and all comers, underperforming stores in poorer parts of cities and rural communities shuttered and sold at auction. In documents filed Tuesday, Penn Traffic noted that Friday is the final hearing on Price Chopper's bid to buy those 22 stores.
“The unions representing Penn Traffic are still hoping for a well-heeled hero to swoop in and save the company and the union jobs. They've swayed a powerful U.S. senator and furiously filed motions to block the ‘stalking horse’ bidder -- the one who wants to liquidate the chain -- and Price Chopper's bid of $54 million for just 22 stores. They say there's still time for bidders for Penn Traffic's assets.”
- KC's View:
