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Penn Traffic Shutters Baking Division

Penn Traffic Co. yesterday said it would shutter its Penny Curtiss bakery operation, effective immediately, to focus on its core supermarket business.

SYRACUSE, N.Y. — Penn Traffic Co. here yesterday said it would shutter its Penny Curtiss bakery operation, effective immediately, to focus on its core supermarket business. The company said Penny Curtiss was contributing less than 4% of Penn Traffic’s annual revenues. In August, Penn Traffic reported that it had lost a significant contract to supply Aldi stores with fresh-based goods. About 160 employees will lose their jobs as a result of the closure, Penn Traffic said. Gregory Young, Penn Traffic’s chief executive officer, said the decision was made “after exhausting efforts to replace lost volume, and facing prohibitive modernization costs.” Penn Traffic operates 103 supermarkets in four Northeastern states under the BiLo, P&C and Quality banners.

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