SYRACUSE, N.Y. -- Penn Traffic Co. here said last week it will close eight stores -- for a total of 56 units sold or shut down since mid-1998 -- as part of a store-rationalization program.
in eastern and central Pennsylvania, and two were Big Bear Markets in Ohio. Of the 30 stores that have closed, most are Bi-Los in Pennsylvania; a spokesman declined to pinpoint the location of the remaining eight stores that will be closed.
The sale of the 17 stores is expected to generate proceeds of about $40 million.
Penn Traffic filed for Chapter 11 relief on March 1 to implement a prenegotiated financial restructuring with holders of its senior and subordinated notes that will result in cancellation of its $1.13 billion debt.
The company said sales for the year ended Jan. 30 fell 6%, to $2.8 billion; same-store sales dipped 4%; and operating cash flow fell 39.8%, to $99.5 million.
For the 13-week fourth quarter, sales declined 8%, to $690.5 million; same-store sales decreased 3.8%; and operating cash flow fell 40.8%, to $25.2 million.
The company reported a net loss of $317.1 million for the year and $93.6 million for the quarter, including a special fourth-quarter charge of $17.7 million, primarily related to the store-rationalization program, and a noncash charge of $52.5 million for a writedown of a portion of the recorded asset value of some stores.
