Having filed for bankruptcy protection for the third time in 10 years, Penn Traffic has decided that it will now seek to sell all or at least most of its assets.
The company, which operates 79 stores in four states, may already have a buyer or buyers in place. Retail analyst Burt P. Flickinger III told The Post-Standard that an investment group was looking at "putting the company back together."
"If you get some of the better people from before and new capital in, I think it could work. The company can be saved rather than auctioning it off," he said. "Sometimes, financial advisers push for that, because they get fatter fees."
In announcing its decision to file for Chapter 11 protection, the company said it intended to keep operating stores.
"Our P&C, Quality and BiLo supermarkets remain open for business to serve our customers and communities," Gregory Young, president and chief executive officer of the company, said in a press release. "We intend to continue to work closely with our vendor partners to provide the fresh products and good value that our customers have come to expect from our stores."
Discussion Questions: What is the scenario that you see playing out for Penn Traffic Company? Is the company a good fit for another retailer to acquire?