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Union eyes Penn Traffic moves
Published: November 21, 2009
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The union representing employees with Penn Traffic is closely watching developments as the company goes through proceedings for Chapter 11 bankruptcy protection.
The Web site of the United Food and Commercial Workers (UFCW) is being updated with developments, and on Friday it announced that Penn Traffic filed a motion Thursday in court to approve the payment of wages and benefits to employees. The motion was approved by the judge, according to the union.
The Penn Traffic Co. is the parent firm of the P&C and BiLo grocery markets. Locally, there are two P&Cs in the Valley, one P&C in Wysox, and a BiLo in both Canton and Troy.
Penn Traffic filed for bankruptcy in a Delaware court, and told Local One that it was looking to sell its stores and other assets while under Chapter 11 protection, the union Web site notes. The local was represented by counsel to protect employees' pension benefits, health care benefits and employee accrued benefits like vacation pay and personal days, according to the union.
In addition, the union Web site contains a copy of a Nov. 18 letter from Penn Traffic to Frank DeRiso, president of UFCW Local One.
The company notes that if it can't get the financing it needs or alternative sources of capital and liquidity, or can't sell stores and/or warehouses to someone who would maintain them as ongoing operations, it will be forced to close stores and/or warehouses. This would be "as soon as on or about Feb. 15, 2010," the letter notes.
Penn Traffic has closed stores before.
Most recently, a Jan. 9 news release from the company noted that, as part of its ongoing effort to improve its long-term financial performance and reinvest in its core store portfolio, it was closing eight stores. Seven were in New York and one was in Vermont.
According to Greg Young, Penn Traffic President and Chief Executive Officer, the decision to discontinue operation of the eight stores was consistent with Penn Traffic's ongoing effort to improve the financial stability of the company.
And its experience with Chapter 11 isn't new.
Back in 2005, The Penn Traffic Company announced that it had formally emerged from Chapter 11 under the Bankruptcy Code.
Eric Hrin can be reached at (570) 297-5251; e-mail: reviewtroy@thedailyreview.com
1 posted comments
I am surprised that BiLo employees are in a union, but now I understand why they charge me $1.04 for Spagetti-Os when I can drive 23 miles to Walmart and get it for $0.97. My extra 7 cents is going to pay for them thar rich (and probably lazy) union employees at the BiLo!
Well I've had enough! From now on the Walton family is gettin' all my money (God knows they don't have much) and if Saudi Arabia gets a little extra money for all the gas I waste then that's okay, too (It's not like terrorists come from there or anything!)