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Tops bid approved

Thu, Jan 28th 2010 12:00 am
By JAMES FINK
Business First

A U.S. Bankruptcy Court judge has approved the sale of the 79 Penn Traffic Co. supermarkets and other assets to Tops Markets LLC.

Late Monday afternoon, Hon. Peter Walsh, a federal Bankruptcy Court judge in Delaware, approved Tops' bid of $85 million, plus another $70 million in incentives, for the Penn Traffic stores - including 13 Quality supermarkets in Western New York. Penn Traffic also owns the Bi-Lo and P&C Food Market stores.

The deal is expected to close tomorrow, with the 79 Penn Traffic stores set to merge into the Tops system.

The deal doubles the number of stores Tops owns, increases the chain's presence in Western and Central New York, and could result in the company adding at least 50 jobs at its Amherst headquarters.

Penn Traffic filed for Chapter 11 protection in November, the third time the Syracuse-based chain had done so in the past decade.

"We are very pleased the court has approved our comprehensive bid," Frank Curci, Tops president and CEO, said in a prepared statement. "We look forward to the upcoming closing and the opportunity to bring the Tops Friendly Markets shopping experience to our new neighbors and customers."

In past interviews, Curci has said that Tops will keep most of the Penn Traffic stores, although some may be closed or sold.