Penn Traffic files Chpt 11, plans to sell stores

Supermarket operator Penn Traffic files for Chapter 11, plans to sell off stores

SYRACUSE, N.Y. (AP) -- The Penn Traffic Co., a supermarket operator in the Northeastern U.S., filed for Chapter 11 Wednesday with plans to sell off its stores and other assets.

The company, based in Syracuse, N.Y., operates the P&C, Quality and BiLo supermarkets in upstate New York, Pennsylvania, Vermont and New Hampshire. They will remain open while the company looks for someone to buy them, CEO Gregory Young said in a statement.

Penn Traffic said it plans to ask a bankruptcy judge Thursday to approve a cash collateral arrangement to give it sufficient liquidity to maintain its operations while under bankruptcy protection.

The company filed its case in the U.S. Bankruptcy Court in the District of Delaware.