Penn Traffic to Close 16 Stores
SYRACUSE, N.Y. - The Penn Traffic Company on Friday announced that it is seeking permission from the U.S. Bankruptcy Court for the Southern District of New York in White Plains to close 16 of its 211 supermarkets. Penn Traffic said that the store closures would affect approximately 1,035 employees and that all 16 stores would close by the end of the year, pending court approval.
"These 16 supermarkets were unprofitable or among our least profitable stores, and our analysis indicated that there was little or no potential for them to become more profitable in the future because of a variety of economic and competitive factors," said Steven G. Panagos, Penn Traffic's interim c.e.o.
"Closing these stores was a very difficult decision, because we recognize how hard the employees in these stores have been working to make them a success, and we understand that the closings will be inconvenient for the many customers of the stores and the communities in which they are located," said Panagos. "We believe, however, that these moves are necessary for Penn Traffic to exit Chapter 11 a stronger, more competitive company."
Penn Traffic said it expects to obtain approval from the court to close the 16 stores by the end of this month.
"These 16 supermarkets were unprofitable or among our least profitable stores, and our analysis indicated that there was little or no potential for them to become more profitable in the future because of a variety of economic and competitive factors," said Steven G. Panagos, Penn Traffic's interim c.e.o.
"Closing these stores was a very difficult decision, because we recognize how hard the employees in these stores have been working to make them a success, and we understand that the closings will be inconvenient for the many customers of the stores and the communities in which they are located," said Panagos. "We believe, however, that these moves are necessary for Penn Traffic to exit Chapter 11 a stronger, more competitive company."
Penn Traffic said it expects to obtain approval from the court to close the 16 stores by the end of this month.