May 17, 2012Schumer Announces Tops Sole Bid for Quality
From the Post-Journal Article by Dennis Philips:
In the fight to keep Penn Traffic employees working during ongoing bankruptcy proceedings, U.S. Sen. Charles Schumer, D-N.Y., had some good news for employees, union representatives and local politicians Monday.
During a rally at the Foote Avenue Quality Markets, Schumer told the crowd that there is only one bidder left for Penn Traffic assets - Tops Market.
On Friday, Tops officially made an offer in bankruptcy court proceedings to purchase Penn Traffic for $85 million. Employees of both Tops and Penn Traffic's Quality Markets, BiLo Foods and P&C Foods stores utilize the same union, the United Food and Commercial Workers, which could mean a less complicated transition, at least as far as union employees are concerned. Penn Traffic operates supermarkets in Upstate New York, Pennsylvania, Vermont and New Hampshire under the P&C Foods, Bi-Lo Foods and Quality Markets names.
Prior to Monday, there was also another bid from Price Choppers for $54 million for Penn Traffic stores in the Syracuse and Utica area. However, Schumer announced that after Tops bid on Friday, Price Choppers has fallen out of the running.
''We're about to cross the goal line and save all these stores,'' Schumer said. ''Price Choppers has said 'It's pretty much over.'''
Tops purchasing the stores would mean that most of Penn Traffic's operations would remain open and more than 4,000 employees would continue working. Schumer said there is nothing left to do except wait for the bankruptcy judge to announce Tops' bid is the best by the Jan. 21 deadline.
The senator said another company could make a higher bid before the Jan. 21 deadline, but said there is a 99 percent chance that won't happen. However, he said if it did occur, the Penn Traffic stores and employees would probably continue working just like they would if the Tops bid is accepted.
Schumer said Tops officials have said they plan to keep almost all the stores they purchase open and if there are any closings, they will do their best to keep all employees working.
''In these tough times something good has happened,'' he said.
Last month, Schumer became involved in Penn Traffic's bankruptcy proceedings when he asked the company's creditors - GE Capital - to extend its deadline for bids to sell the company's grocery stores. GE Capital agreed to pursue a schedule for bids that corresponds to Schumer's request to keep Penn Traffic open and operating through the end of January. Prior to extending the deadline, it appeared a liquidator was going to purchase Penn Traffic to sell off assets, effectively closing each store.
Jamestown Mayor Sam Teresi and County Executive Greg Edwards were both on hand to thank the senator personally.
''I'm gratified to see the location has value,'' Teresi said. ''This market is critical to the south side economy. Having a retail anchor like Tops is good for the community.''
Edwards said its nice to see the U.S. Senator not forget about Western New York.
''It's great to know our senior senator knows us ... gets involved in a positive way,'' he said.