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SYRACUSE, N.Y. - As Tops Markets continues to evaluate the 79 supermarkets it bought out of bankruptcy from The Penn Traffic Co., work is winding down at two of Penn Traffic's grocery warehouses in Syracuse.
Warehouse workers employed by Penn Traffic at the two Geddes facilities have been told by their union that Saturday was the last delivery day from the warehouse to the Big M independent supermarkets they supplied with grocery products.
Feb. 19 will be the last day of their employment under Penn Traffic, the workers have been told. Fifteen employees will remain behind after that date until the warehouses are depleted of their stores, employees were informed.
Syracuse-based The Penn Traffic Co. filed for Chapter 11 bankruptcy protection from its creditors on Nov. 18. Buffalo-based Tops Markets paid $85 million for the supermarket assets of the company, a deal approved in U.S. Bankruptcy Court in Wilmington, Del., where Penn Traffic's bankruptcy case is being heard.
The four warehouses - two in the Syracuse market and two more in DuBois, Pa. - were not part of the Tops deal. Penn Traffic leased the warehouse space and employed C&S Wholesale Grocers to utilize the warehouses and supply Penn Traffic supermarkets and independent grocers, including the Big M chain.
C&S bought Penn Traffic's wholesale grocery distribution business for $43 million in 2008. When Penn Traffic filed for Chapter 11 bankruptcy protection, it told the court that in this, its third such filing in 10 years, the plan was to sell Penn Traffic's assets.
Shortly thereafter, C&S began shifting grocery products out of the two Syracuse warehouses and to DuBois, from where C&S continues to supply independent supermarkets in Upstate New York as well as Pennsylvania.
Tops has a separate deal with C&S, which is based in Keene, N.H. C&S supplies Tops stores from a warehouse in Lancaster, near Buffalo.
When C&S bought Penn Traffic's wholesale grocery distribution business, it used Penn Traffic employees to manage, sort and move the goods, as well as ship the product to Penn Traffic supermarkets - including the P&C Foods chain - as well as the independent stores.
It is unknown how many Penn Traffic employees worked in the two warehouses. C&S has not returned repeated calls for comment on its relationship with Penn Traffic and the status of the warehouses.
C&S also utilized Penn Traffic employees to maintain Penn Traffic's fleet of trucks, as well as drive them to deliver the groceries.
Those Penn Traffic employees, members of Teamsters Union Local 317, are losing their jobs.
Meanwhile, Tops Markets continues to evaluate its newly acquired supermarkets. Tops president and CEO Frank Curci said "a small handful" of former Penn Traffic stores will be closed, but the company hasn't said which ones or exactly how many will close.
The Tops acquisition is also under review by the Federal Trade Commission, a typical procedure when one retailer is purchased by a competitor.
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Eleven of the 79 stores Penn Traffic owned and operated are BiLo markets in Pennsylvania and include stores in DuBois, Troy, Brookville, Clarion, St. Marys, Philipsburg, Tyrone, Blairsville, Canton, Wellsboro and one of three stores in Johnstown.
Numerous other affiliated stores were not part of the bankruptcy proceeding.
Some stores are classified as associate and/or wholesale. They are independently owned and remain in operation. They include Renovo BiLo; Martino's BiLo in Brockway; Jersey Shore BiLo; Watsontown BiLo; Homer Center BiLo; Mike's BiLo in Reynoldsville; Ridgway BiLo; Northgate Plaza BiLo in Harmony; Seward BiLo; Thorne's BiLo in Warren; Tom's Riverside in New Bethlehem, Knox and Rimersburg, Sander's Market Fresh Foods in Corry; Sander Brothers Inc. in Northeast; Sander's Market in Erie; three Ideal Market locations in Johnstown; and Mercik's Ideal Market in Johnstown.
Wholesale markets locations, which are also not part of the bankruptcy process, include Comet Market in Punxsutawney; Tate's Super Market in Clymer; Comet Food Warehouse in Clarion; J G Food Warehouse in Clearfield; Jefferson Wholesale in Punxsutawney; Shopper's Choice in Allison Park; Naser Foods in Apollo and Pleasant Unity; Blackburn-Russell Co. in Bedford; Stager's Market in Portage.
There are also 22 Quality Market stores in northern Pennsylvania and southern New York that are owned by the company and are part of the bidding in Bankruptcy Court. Those markets include locations in Kane, Sheffield, Titusville, Union City, Meadville, Waterford, Youngsville and Erie.
