The acquisition of Penn Traffic's 79 stores by Tops Friendly Markets has been finalized, but what will ultimately happen to each location has yet to be revealed.
Tops announced Friday evening it has completed the acquisition of a majority of Penn Traffic's assets, including locally-known Quality Markets, BiLo and P&C, throughout New York, Pennsylvania, Vermont and New Hampshire. Tops' bid of more than $85 million was approved by the U.S. Bankruptcy Court earlier in the week.
The 79 former Penn Traffic stores are added to the 76 that Tops already owned. Tops President and CEO Frank Curci thanked those who supported the chain in this effort.
"We are very eager and excited to begin working with store managers and associates to best serve the grocery shopping needs of our new neighbors and customers," Curci stated in a release.
Among the voices pushing for the acquisition was Sen. Charles Schumer, who worked with Penn Traffic following its filing for bankruptcy in November 2009 and helped persuade its creditor, G.E. Capital, to extend the bid submission deadline.
"It's over at last," Schumer said. "The final step has been achieved. The vast majority of workers will keep their jobs at good salaries and virtually all the stores will be kept open. I want to thank G.E. Capital for being flexible and allowing this deal to happen, the workers for being strong and persistent, and Tops for being generous and community minded. It's a good day for New York."
The acquisition saves many of the former Penn Traffic locations from liquidation, but some may still close. According to Tops, all stores will remain open and operating for approximately 30 days as each location is evaluated. Penn Traffic asked the bankruptcy court to seal any potentially closing stores from public record.
The Quality Markets location at D&F Plaza in Dunkirk is less than a mile down the road from Tops on Vineyard Drive. A manager at the store who spoke on terms of anonymity said the store had not yet received word on its fate but expected to know within 30-60 days. Additional locations in the county - Westfield, Silver Creek, Jamestown, Lakewood, Mayville and Frewsburg - will also undergo evaluation.
The Quality Markets location at Fourth Street in Dunkirk was purchased by Save-A-Lot in a separate transaction.
A Federal Trade Commission review of the acquisition is still under way. Once completed, Curci said Tops would pursue a capital improvement program similar to the current investment program Tops has had in place for its stores.
Calls placed to Tops Friday evening were not returned.
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