The Daily Star, Oneonta, NY - otsego county news, delaware county news, oneonta news, oneonta sports

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November 25, 2009

P&C stores to close by February

Staff and Wire Reports

Penn Traffic Co. has told state officials it will close dozens of supermarkets in upstate New York, including P&C; stores in Hartwick Seminary and Norwich, which have about 110 jobs.

The company, which has headquarters in Syracuse, filed notice with the state Department of Labor that 55 P&C; and Quality Markets grocery stores and warehouses will close effective Feb. 15.

The list includes the Cooperstown-area P&C; at 5 Commons Drive, off state Route 28 in Hartwick Seminary, which has 45 union jobs and two non-union positions, and the P&C; at 54 E. Main St. in Norwich, which has 64 union and two non-union posts.

The company has said it still hopes to raise enough money to avoid shutdowns, according to a letter obtained by television station WSTM in Syracuse.

A manager at the Cooperstown- area store referred questions to Chuck Beeler in Syracuse, who said Tuesday that he had no information to release about the status of individual store closures.

Penn Traffic told state officials that 4,142 employees of its P&C; and Quality Markets throughout the state will be affected when facilities close Feb. 15.

Penn Traffic filed for Chapter 11 bankruptcy last week. In addition to its P&C; and Quality Markets stores in upstate New York, Penn Traffic operates nine Quality Markets and 33 BiLo stores in Pennsylvania and three P&C; stores in northern New England. Employment in all four states totals about 5,700.

Penn Traffic Chief Executive Officer Gregory Young said Tuesday that the company plans to sell off its stores and other assets, according to an Associated Press report, and that the stores would remain open while a buyer is sought.

The company has struggled financially for more than a decade. It emerged from a nearly two-year bankruptcy reorganization in April 2005 but has continued to lose money, the AP said. It lost $17.6 million last year and nearly $42 million the previous year. The company also went through bankruptcy reorganization in 1999.

A P&C; on Chestnut Street in Oneonta closed in December 2003. Penn Traffic filed notice with the state Thursday as required by New York’s Workers Adjustment and Retraining Notification Act. The act is designed to give employees, their representatives, the Department of Labor and the local Workforce Investment Board early warning of business closings and layoffs, and 90 days’ notice before the closing of a plant, mass layoff, relocation or other covered reduction in work hours.

Notification is to give employment officials time to work with an employer to give affected employees information about unemployment insurance and workforce programs, the state Department of Labor website said. The WARN Act took effect Feb. 1.

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