SYRACUSE, N.Y. -- Penn Traffic here said last week it is considering selling 21 company-owned stores and all five of its distribution centers to a real-estate company, then leasing them back to provide funding for various corporate needs.
The company also said it was expecting approval last week from the U.S. Bankruptcy Court for the Southern District of New York on its request to extend the deadline for filing its plan of reorganization from July 28 until Sept. 26 -- the fourth time the deadline would be extended.
Of the company's 111 stores, all but the 21 are leased, a chain spokesman told SN. The chain's baking facility here, Penny Curtiss Baking Co., is also leased, he added.
Of the 21 stores, 14 are in upstate New York -- nine P&C Food Stores and five Quality Markets -- and seven Bi-Lo stores are in Pennsylvania. The five warehouses include separate grocery, perishables and frozen food facilities here; a nonfood warehouse in Jamestown, N.Y.; and a grocery/perishables facility in Dubois, Pa.
Money from the sale of the properties will be reinvested in new stores, equipment, inventory and upgrades, the company said.
Penn Traffic has been operating under Chapter 11 bankruptcy protection since May 2003. It has sold or closed 100 stores since the filing and lost more than $155 million.