Another Western New York super market chain might be interested in Quality Markets stores and other Penn Traffic-owned properties.
Tops Markets is reportedly trying to find out what is happening with Penn Traffic's property, which operates supermarkets in Upstate New York, Pennsylvania, Vermont and New Hampshire under the P&C Foods, Bi-Lo Foods and Quality Markets names.
Tops filed papers in a Delaware bankruptcy court requesting copies of any notices or documents served in the Penn Traffic case. It also retained counsel with Wilmington firm Young Conaway Stargatt & Taylor LLP to represent it in the matter. Tops' request to stay abreast of Penn Traffic's situation is its first official show of interest in the chain's stores.
Of course, Tops officials are keeping quiet about what exactly its plans may be for Penn Traffic properties. On Tuesday, when asked by The Post-Journal for comment on the speculation of possible purchases of Quality Market stores in the Jamestown area, Kate McKenna, Tops Markets communications/public relations manager, said, ''Tops continues to evaluate all opportunities as they present themselves.''
Another unnamed bidder wants to buy the entire company for $36.5 million, according to a report Thursday in the Syracuse Post-Standard.
That bidder, the paper reported, has enlisted an agent consisting of several firms who specialize in liquidating large retail chains. It's likely their goal is to break up the company and make more money selling off Penn Traffic in chunks and liquidating the rest of the company's assets.
Penn Traffic filed bankruptcy last month for the third time. This time, the company is seeking to sell all of its assets, including the 13 Quality Markets in Western New York - Attica, Dunkirk, Ellicottville, Falconer, Frewsburg, Jamestown, Lakewood, Lockport, Mayville, Randolph, Silver Creek, Westfield and Amherst. The Syracuse-based supermarket operator's layoff notice filed with the state Labor Department says it will close 53 P&C and Quality Markets in central and western New York by Feb. 15. The affected stores and warehouses, located from the state's southwest corner to the Canadian border in the north, employ 4,132 people.
Penn Traffic says the layoffs include 669 jobs at two suburban Syracuse warehouses the company uses through C&S Wholesale Grocers.
Last month when filling for bankruptcy, Penn Traffic said in a news release that it wants to maintain ongoing operations during the sale of its stores and other assets with the consent of senior secured lenders. A bankruptcy court hearing scheduled for Thursday was postponed until Tuesday.
''Our P&C, Quality and BiLo supermarkets remain open for business to serve our customers and communities,'' said Gregory J. Young, Penn Traffic president and chief executive officer. ''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."
The company will continue to manage its properties and operate as debtors-in-possession under the jurisdiction of U.S. Bankruptcy Court. The petition stated that Penn Traffic wanted a consensual cash collateral arrangement with its lenders to allow the business to have sufficient assets to maintain normal business operations during the sale process.
Recently, Steve Senske, Farm Fresh Foods owner, said Farm Fresh might be interested in buying some of the Jamestown area stores to add to Farm Fresh's locations on Fluvanna Avenue and West Third Street.
''We like to stay in the Jamestown area. We've developed a reputation of keeping it local,'' he said recently. ''To help some of the areas that need a super market that are not necessarily in downtown Jamestown, but in the outlining area, we would consider (buying).''
