Penn Traffic might sell 11 stores to Kroger
Nov 11, 2003 12:00 PM, from staff and wire reportsThe Penn Traffic Co is seeking permission from the United States Bankruptcy Court for the Southern District of New York in White Plains to sell 11 of its Big Bear supermarkets in central Ohio to Kroger Co for $20 million exclusive of the inventory in the stores.
At an auction set for December 3, other companies will be allowed to outbid Kroger for some or all of this package of 11 stores. They also can bid on other Big Bear assets, including stores, store leases, and Big BearÕs three Columbus OH-based warehouses. Penn Traffic also is seeking court permission to hire an affiliate of Kimco Realty Corp to assist in marketing and selling its Big Bear store leases.
ÒWe are considering a number of strategies, including the sale or closing of the entire Big Bear division,Ó said Steven G Panagos, Penn TrafficÕs interim chief executive officer. ÒIt will be business as usual at Big Bear until we sell or close any stores.Ó
Penn Traffic entered Chapter 11 reorganization May 30; since then it has closed one supermarket and announced the closing by the end of the year of another 41 supermarkets.