< Back to previous page

Penn Traffic files for bankruptcy protection

Published on 20 Nov 2009 under category: legal

A US supermarket operator has filed for bankruptcy protection.

Penn Traffic took the financial action while announcing plans to sell off assets.

The company's board of directors decided that this would be the best action to take in the interest of the firm's stakeholders and creditors.

This is because Chapter 11 would allow the business to sell its assets and stores with the consent of lenders.

Properties will continue to be managed by Penn Traffic through a debtors in possession agreement.

Gregory Young, president and chief executive officer for the company, said: "Our P&C, Quality and BiLo supermarkets remain open for business to serve our customers and communities.

"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."

Penn Traffic operates stores through several brands in the US and is headquartered in New York.

If you require advice on Insolvency and Bankruptcy please call us on +44 (0)20 7831 0101 and ask for Katherine Sillett.