NORWICH – Due to the efforts of Sen. Charles E. Schumer, Norwich residents and employees of P&C have a little breathing room concerning the announced closing of the downtown grocery.
Penn Traffic, which owns several chains of stores including P&C supermarkets, has agreed to drop its push for a low-ball liquidation bid, which would have shuttered stores and tossed workers out. Earlier this week, Penn Traffic and GE Capital, its main creditor, received a letter from Schumer strongly opposing the liquidation bid and urging all parties to adhere to a Jan. 22 deadline for the submission of bids that would save the most jobs, according to a press release from the senator’s office.
In addition, bids on the stores have already been reported, possibly saving most, if not all of the stores.
“Tops Markets is very interested in acquiring Penn Traffic’s assets, including its 79 locations,” stated Katie McKenna, communications and public relations for the Williamsville-based Tops chain. “We cannot speculate about or comment on any outcome at this point.”
Tops Markets is expected to place its bid later today. Any sale of Penn Traffic’s assets will require the approval of the U.S. Bankruptcy Court in Wilmington, Del.
Syracuse-based Penn Traffic filed for Chapter 11 bankruptcy protection in November and notified state officials that it will close 53 P&C and Quality Markets in central and western New York by Feb. 15.
Tops Supermarkets is offering to buy the entire P&C chain while Price Chopper is bidding on 22 stores – not including the one in Norwich. The P&C Supermarket at 54 East Main St. employs 64 union and 2 non-union workers. P&C has operated in Norwich since April of 2006, when it replaced the original Tops Friendly Markets.
“We are not across the goal line yet, but it looks like the components are all coming together to save thousands of jobs and dozens of grocery stores across Upstate New York,” said Schumer. “I am optimistic that by the end of tomorrow (Friday) we will see some very competitive bids.”
The senator’s optimism is shared by Norwich Mayor Joseph Maiurano.
“This scenario is very similar to the one we endured when Tops left,” stated the mayor. “I’m feeling optimistic at this point and hope for a speedy transition.”
City of Norwich residents have expressed concern since hearing of the potential closing, considering the potential job loss and the downtown location of the store.
“We need to have a store downtown,” said Ruth Fredenburg, who often walks to P&C during her lunch break. “There are a lot of people in the city who don’t drive, and we certainly don’t need any more unemployment. These people have families to support.”
Cherie Miner, who has managed the Video King which shares the East Main Street plaza with the grocer, also expressed concern.
“The biggest issue is we need to keep those customers coming. The closing would have a big impact on all the nearby businesses,” said Miner. “It’s a big factor because what else is going to bring people here?”
Schumer said he is confident that all parties involved understand that selecting a bid that would keep the most stores open and operating is the right thing to do.
“I think we are heading in that direction,” said the senator. “Saving jobs is obviously urgent in this economic climate, but it’s also important to preserve the maximum number of stores, as many of these grocery stores exist in communities with preciously few food shopping options.”
According to the press release from Schumer’s office, Penn Traffic operates stores in a number of rural locations where they are the only provider of groceries. Many communities would face commutes of an hour or more to find grocery stores without Penn Traffic. Penn Traffic has 79 stores, 53 of which are in New York, and employs 6,000 people, roughly 4,000 of which are in New York.
“You really have to give thanks to our elected officials for the amount of work they’ve put into this on our behalf,” said Maiurano.