18 more P&C stores eyed by Price Chopper
Price Chopper moved Tuesday to buy 18 P&C stores in addition to the four stores in St. Lawrence County it previously indicated it wanted to acquire.
In addition to P&C stores in Massena, Potsdam, Canton and Gouverneur, Price Chopper now also wants P&C stores in West Carthage, Pulaski and Camden, according to documents filed in U.S. Bankruptcy Court, Wilmington, Del., by P&C's parent company, The Penn Traffic Co.
P&C stores in Watertown, Ogdensburg and Lowville are not included in the deal, according to court documents. Price Chopper already operates stores in Watertown and Ogdensburg.
The proposed deal calls for Price Chopper to buy a total of 22 P&C stores for $54 million. The deal is subject to bankruptcy court approval. Penn Traffic filed for Chapter 11 bankruptcy protection Nov. 18.
Most of the remaining stores sought by Price Chopper are in Syracuse or its suburbs, including Fayetteville, Camillus, Manlius, Chittenango, Canastota and Cazenovia.
The proposed sale agreement gives Price Chopper the right to hire P&C employees once the sale is complete, although the Schenectady-based grocer would be under no obligation to do so.
Penn Traffic, which operates 79 P&C stores, is in the midst of its third bankruptcy proceeding in 10 years. The company emerged intact from bankruptcy court reorganization in 1999 and again in 2005, but with its latest filing it has indicated it intends to liquidate its assets as soon as possible.
A hearing scheduled for Wednesday on a motion that could have cleared the sale of the four St. Lawrence County P&Cs to Price Chopper was canceled, as P&C has withdrawn its "four store sale motion" in favor of a motion to sell the 22 stores. A hearing on the proposed sale of the stores is scheduled for Jan. 8.
Penn Traffic also is entertaining an offer from a joint venture consisting of five limited liability companies that want to buy all of its assets for $36.5 million, although court documents show that the company views Price Chopper's offer as the "highest and best."
