Penn Traffic Fires Two Execs for Improper Allowance Practices
SYRACUSE, N.Y. -- Penn Traffic Co. here said Friday that two of its top executives had been fired following an audit committee's findings related to the company's promotional allowance practices and policies.
The executives dismissed were Les Knox, s.v.p. and chief marketing officer; and Linda Jones, v.p., non-perishable merchandising, the company said.
The Northeastern supermarket chain's board of directors decided to fire the executives following an audit committee's presentation of an interim report in connection with its internal investigation into the company's promotional allowance practices and policies. To date, the internal investigation has found certain improper practices relating to the recognition of promotional allowances in periods prior to the company's emergence from Chapter 11 under the Bankruptcy Code in April 2005, Penn Traffic said.
The internal investigation at one point had been suspended, but has recommenced and is ongoing, Penn Traffic said. The company said it continues to cooperate with investigations by the U.S. Securities and Exchange Commission and the U.S. Attorney's Office.
Penn Traffic said it continues to have full access to its working capital facility. As of Jan. 28, Penn Traffic had undrawn availability of approximately $53 million and a 30-day average undrawn availability of approximately $55 million under this revolving credit facility.
The retailer laid off 45 employees last month, which it said was an efficiency move. The chain currently operates more than 59 P&C Foods stores in upstate New York, northern Pennsylvania, New Hampshire, and Vermont; over 26 BiLo Foods stores and Riverside Markets in Pennsylvania; and more than 24 Quality Markets in western New York and Pennsylvania.
The executives dismissed were Les Knox, s.v.p. and chief marketing officer; and Linda Jones, v.p., non-perishable merchandising, the company said.
The Northeastern supermarket chain's board of directors decided to fire the executives following an audit committee's presentation of an interim report in connection with its internal investigation into the company's promotional allowance practices and policies. To date, the internal investigation has found certain improper practices relating to the recognition of promotional allowances in periods prior to the company's emergence from Chapter 11 under the Bankruptcy Code in April 2005, Penn Traffic said.
The internal investigation at one point had been suspended, but has recommenced and is ongoing, Penn Traffic said. The company said it continues to cooperate with investigations by the U.S. Securities and Exchange Commission and the U.S. Attorney's Office.
Penn Traffic said it continues to have full access to its working capital facility. As of Jan. 28, Penn Traffic had undrawn availability of approximately $53 million and a 30-day average undrawn availability of approximately $55 million under this revolving credit facility.
The retailer laid off 45 employees last month, which it said was an efficiency move. The chain currently operates more than 59 P&C Foods stores in upstate New York, northern Pennsylvania, New Hampshire, and Vermont; over 26 BiLo Foods stores and Riverside Markets in Pennsylvania; and more than 24 Quality Markets in western New York and Pennsylvania.