http://www.syracuse.com/news/index.ssf/200...



Syracuse, NY -- Two bankruptcy reorganizations and the mass closing of stores and warehouses during the past decade could not save the parent company of the P&C Foods supermarkets chain.

Syracuse-based The Penn Traffic Co. has filed for bankruptcy for the third time in 10 years. This time, it plans to sell all or most of its assets, consisting mainly of 79 supermarkets in four states, by Jan. 10.

Penn Traffic made the announcement Wednesday afternoon, days after troubling flares were sent up to investors and customers in the form of missed loan payments and empty store shelves. The company made the filing in federal bankruptcy court in Wilmington, Del.

Penn Traffic plans to continue to operate its stores under court protection from its creditors while it seeks a buyer. It might already have a buyer in mind, considering it has locked in a date. “We intend to continue to work closely with our vendor partners to provide the fresh products and good value that our customers have come to expect from our stores,” said Gregory J. Young, Penn Traffic’s president and chief executive officer.

The company will also continue to pay its 5,700 employees, who draw $2.3 million each pay period, and continue benefits, according to documents it filed Wednesday with federal bankruptcy court.

The Syracuse-based grocer is expected go before a U.S. Bankruptcy Court judge in Wilmington, where it is incorporated, Thursday. It will seek approval to make arrangements with its lenders for money to operate. Penn Traffic reported to the court and the federal Securities and Exchange Commission that it has assets of $150.4 million, while its liabilities are $136.9 million.
</snip>