SYRACUSE, N.Y. -- Penn Traffic here has reopened two stores it acquired under the P&C banner.
id $1.54 million for the two stores and their inventory in a transaction approved by the separate bankruptcy courts overseeing each company.
"Buying the Peter's supermarkets at these excellent locations demonstrates both the underlying strength of our core operations as we [prepare to] emerge from reorganization and our long-term commitment to be the supermarket of choice in Syracuse," said Bob Chapman, president and chief executive officer, Penn Traffic.
Penn Traffic has been operating under Chapter 11 bankruptcy protection since May 2003. Separately, Penn Traffic released financial results for October and the 74 weeks since it filed for bankruptcy on May 30, 2003. For the five weeks of October, sales were $119.5 million, with operating income of $1.4 million and a net loss of $907.000. For the 74 weeks, sales were $1.8 billion, with operating income of $9.3 million and a net loss of $159.2 million.
Penn Traffic filed a plan of reorganization with the U.S. Bankruptcy Court for the Southern District of New York on Aug. 20. Because of potential sale-leaseback transactions and their impact on the company's capital structure upon emerging from Chapter 11, Penn Traffic has been granted several postponements for a hearing to approve its disclosure statement. A hearing is currently scheduled for Jan. 24.