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The future of the Penn Yan P&C store hangs between two major grocery store outlets and U.S. Bankruptcy Court Judge Peter J. Walsh will be reviewing a large volume of documents at 2 p.m. today in the Penn Traffic bankruptcy case. The largest document — over 260 pages — is a motion offered by Penn Traffic for the sale of the company's entire assets to Tops Markets for $85 million by Jan. 28.
While the motion includes hundreds of specifics regarding the proposed transaction, it does not indicate the plans for individual stores, including the Penn Yan P&C.
The judge has also received a document from Price Chopper in reply to an objection filed by the labor union representing some P&C and Tops employees. That objection was the labor union's reaction to Price Chopper's offer to purchase 22 Penn Traffic stores, including the Penn Yan P&C.
In addition, the judge has received a letter from the Yates County Chamber of Commerce explaining the importance of having a large grocery store in the community.
"While competition does exist in the county for grocery dollars, the P&C store represents the greatest volume of any of the other retail food outlets. Our county population is largely elderly and with the lack of public transportation, P&C is the only choice for many of he county residents in terms of grocery. It is critically important to the local economy and the well being of the residents that this store continues to operate," wrote Michael Linehan, president and CEO of the Chamber.
The Tops offer includes an interim agreement whereby Tops will manage the Penn Traffic properties through going out of business sales. Under that motion, as presented by Penn Traffic, the stores will continue to operate with the current employees, but once the sale to Tops is complete, Tops can retain, transfer or release any employee or group of employees.
As spelled out in the motion, during the period leading up to the closing of the sale, Tops would accept gift certificates, gift cards and store credits issued by the merchant before the agreement, but Tops would not be required to accept rain checks or other promotional items and would have not obligation to honor "Wild Cards."
And, there is no indication which stores would continue to operate and which stores would be closed down by Tops.
The future of the Penn Yan P&C store hangs between two major grocery store outlets and U.S. Bankruptcy Court Judge Peter J. Walsh will be reviewing a large volume of documents at 2 p.m. today in the Penn Traffic bankruptcy case. The largest document — over 260 pages — is a motion offered by Penn Traffic for the sale of the company's entire assets to Tops Markets for $85 million by Jan. 28.
While the motion includes hundreds of specifics regarding the proposed transaction, it does not indicate the plans for individual stores, including the Penn Yan P&C.
The judge has also received a document from Price Chopper in reply to an objection filed by the labor union representing some P&C and Tops employees. That objection was the labor union's reaction to Price Chopper's offer to purchase 22 Penn Traffic stores, including the Penn Yan P&C.
In addition, the judge has received a letter from the Yates County Chamber of Commerce explaining the importance of having a large grocery store in the community.
"While competition does exist in the county for grocery dollars, the P&C store represents the greatest volume of any of the other retail food outlets. Our county population is largely elderly and with the lack of public transportation, P&C is the only choice for many of he county residents in terms of grocery. It is critically important to the local economy and the well being of the residents that this store continues to operate," wrote Michael Linehan, president and CEO of the Chamber.
The Tops offer includes an interim agreement whereby Tops will manage the Penn Traffic properties through going out of business sales. Under that motion, as presented by Penn Traffic, the stores will continue to operate with the current employees, but once the sale to Tops is complete, Tops can retain, transfer or release any employee or group of employees.
As spelled out in the motion, during the period leading up to the closing of the sale, Tops would accept gift certificates, gift cards and store credits issued by the merchant before the agreement, but Tops would not be required to accept rain checks or other promotional items and would have not obligation to honor "Wild Cards."
And, there is no indication which stores would continue to operate and which stores would be closed down by Tops.
Price Chopper's lawyers argue that the offer to purchase 22 stores for $54 million dollars was accepted by Penn Traffic in a transaction that was negotiated in good faith and that there was an understanding that Penn Traffic would not pursue any competing bids in respect to the 22 store sale motion.
Price Chopper originally offered $46 million for the 22 stores, but then agreed to the higher price through a private sale that would not be subject to any competitive bids.
The United Food & Commercial Workers Union, Locals 1,23 and 266 had objected to the 22 store sale motion because it may not bind Price Chopper to existing collective bargaining agreements
Price Chopper's offer is to purchase the stores only, with no grocery inventory since the company's intention is to rebrand and remodel each of the 22 locations. Price Chopper would be under no obligation to hire current P&C employees. However, those employees could seek jobs at those locations.
Both offers are subject to Walsh's approval, and there is still a chance that another higher or better bid could come up by the Jan.19 deadline for the auction set for Jan. 21.
