Published: November 20, 2009 11:12 pm      

Penn Traffic files for bankruptcy: BiLo selling markets

JOHNSTOWN — The Penn Traffic Co. has filed for Chapter 11 bankruptcy for the third time, and this time the fate of the Westwood Plaza store more directly hangs in the balance.

Penn Traffic said its stakeholders would best be served by seeking “an orderly sale of its stores and other assets.”

The Syracuse, N.Y.-based concern did not say what might happen to its company-owned stores – including another in Blairsville – if they cannot be sold in a timely fashion. Dozens of workers are employed at the Westwood and Blairsville groceries.

The store manager in Westwood, who only gave his name as Rich, said he was told to refer calls to a Penn Traffic spokeswoman.

That person, Meredith Dropkin in Syracuse, said the supermarkets were told that only to “get the heat off the local stores.” Dropkin said she could say nothing beyond what was in a release announcing the bankruptcy reorganization.

In the release, CEO Gregory Young tried to put the best face on the situation.

“Our P&C, Quality and BiLo supermarkets remain open for business to serve our customers and communities,” he said. “We intend to continue to work closely with our vendor partners to provide the fresh products and good value that our customers have come to expect from our stores.”

Most BiLos in Greater Johns-town are independently owned, but rely on Penn Traffic to supply their stores.

The Post-Standard in Syracuse said this week’s bankruptcy filing includes creditors such as Coca-Cola Bottling Co., owed $343,000; a Pittsburgh commercial bakery, which is owed $315,000, and ABC Refrigeration, $405,000.

The newspaper suggested Giant Eagle might want to buy some of Penn Traffic’s stores in Pennsylvania.

Randy Salem, who owns BiLos in Windber and Johns-town, said Friday, “I really don’t have an interest in that location (Westwood) at the present time.” He said he was concentrating on making his current business plan work.

In the two previous Chapter 11 filings, Penn Traffic emerged from reorganization. This bankruptcy filing differs from the previous filings in that Penn Traffic intends to sell the company.

The company – formerly based in Johnstown – has 5,700 employees. It operates supermarkets under the P&C, Quality and BiLo trade names in upstate New York, Pennsylvania, Vermont and New Hampshire.