Tops Likely Winner to Acquire Penn Traffic
Tops Friendly Markets appears set to acquire the majority
of Penn Traffic’s assets as creditors and the union that represent workers
at the bankrupt grocery company have thrown their support behind the bid.
Price Chopper president and CEO Neil Golub, whose company made an offer to
acquire 22 of Penn Traffic’s stores, seems resigned to Tops having its bid
accepted by the bankruptcy court.
"We would have had wonderful stores and they
would have been modernized. I talked to a number of mayors from the communities,
and they would have loved to have a Price Chopper. And their people seemed
to have preferred Price Chopper to having Tops. Be that as it is, that [Tops
deal] is probably going to happen. At this point, there is really not much
more we can do and so life moves on," he told The Post-Standard.
Friendly Markets, which operates 76 stores in Western and Central New York
and Northwestern Pennsylvania, has not committed to how many of the 79 stores
it may eventually acquire.
"From the very beginning of
our transition to a locally operated company, we have pledged to invest in
the markets we serve, and to grow and strengthen our position as the largest
grocery chain in the region," said Frank Curci, Tops’ president and CEO, in
a press release. "This new opportunity allows us to further fulfill that pledge
as we look forward to meeting the needs of our new neighbors and customers,
providing them with a positive shopping experience that focuses on great variety,
value and service."
"Tops is very familiar with the localities served by Penn
Traffic, and it is our goal to keep as many jobs and operate as many stores,
without any interruption in service, as we possibly can," said Kevin Darrington,
Tops chief financial officer. "We also plan to invest in those stores that
are in need of upgrades in an effort to best serve our customers and associates."
Questions: What are your thoughts on Tops’ likely acquisition of Penn Traffic’s
assets and the company’s 79 stores? What will Tops need to do to succeed where
Penn Traffic has failed so many times in recent memory?
Editor’s note: Including
its most recent filing, Penn Traffic sought Chapter 11 bankruptcy protection
three times over a 10-year period.
- Tops Friendly Markets Bid to Acquire Penn
Traffic Assets Recommended to Court – Tops Friendly Markets
Chopper on Tops landing bankrupt Penn Traffic: ‘It is pretty much over’