Regional US grocer Tops Markets has emerged as the likely buyer for Penn Traffic’s bankrupt retail operations after no competing bids were submitted for the 79-store chain.
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An auction scheduled to take place this week was cancelled by the Delaware bankruptcy court when Tops emerged as the only potential suitor. Instead, the court will hold a hearing on Monday (25 January) to consider Tops’ offer.
“We feel that our proposal is strong and are hopeful that the court will approve it,” a spokesperson for Tops said.
The spokesperson added that Tops plans to keep the majority of Penn Traffic’s stores open.
Tops’ offer, which is reportedly worth US$85m plus forgiveness of $100m in Penn Traffic debt, already beat other interest shown in the company and was consequently presented to the court as Penn’s preferred offer.
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By GlobalDataHowever, the court has indicated that it will consider late bids.
Penn Traffic filed for bankruptcy protection for the third time in November. The company operates supermarkets under Bi-Lo, P&C and Quality banners in New York, Pennsylvania, Vermont and New Hampshire.
