Going out of business sales by January 9th
SYRACUSE -- Penn Traffic is requesting a federal bankruptcy court judge expedite approval of a 22 store sales agreement with Price Chopper so the supermarket owner can begin going out of business sales at select P&C stores that will be sold to the Schenectady based grocery chain. Penn Traffic wants Judge Peter Walsh to approve the sales agreement by January 8th so it can begin selling off the merchandise inside the stores. The merchandise is not included in the $54 million deal with Price Chopper.
Court records show Penn Traffic has retained a company called Hilco Merchant Resources to conduct the sale of the in store goods. Merchandise must be moved out so Price Chopper can take possession of the stores by a target date of January 28th. The agreement with Hilco promises a minimum of $11.3 million to Penn Traffic for the sale of the merchandise in the 22 stores. Actual receipts beyond that will be divided as part of the fee paid to Hilco. That $11.3 million combined with the $54 million from Price Chopper equals a total value of more than $65 million for 22 stores.
The Price Chopper purchase agreement includes stores in: Massena, Potsdam, Canton, Gouverneur, Pulaski, Baldwinsville, Fayetteville, Syracuse, North Syracuse, Camden, Cazenovia, Chittenango, Canastota, Manlius, Skaneateles, West Carthage, Penn Yann, Sherrill and three stores in New Hampshire and Pennsylvania.
Penn Traffic filed for bankruptcy on November 18th. It has 79 stores in four states and employs 5,700 people.
For more details on this morning's hearing in bankruptcy court, click here.
