SYRACUSE, N.Y. — Penn Traffic Co. here reached a agreement with a network of property sales agents to market the company's stores and liquidate its merchandise, according to filing yesterday with the U.S. Bankruptcy Court.
The agents have guaranteed that Penn Traffic would receive $36.5 million for the assets. Penn Traffic, which filed bankruptcy last month, currently operates 79 locations, including four that Penn Traffic is seeking to sell to Price Chopper, Schenectady, N.Y. Those four are not included in the agreement.
The sales agents for the stores are KROC Capital Services, Gordon Brothers Group, The Nassi Group, SB Capital Group, and DJM Realty Services. According to the filing, Penn Traffic and the agents would split any revenue generated from store sales over $36.5 million and a $6.5 million fee for handling the sales.
Terry Kushner, vice president of marketing for Penn Traffic, said this or any other proposed transaction would be subject to an additional bidding/auction process and that the bankruptcy court must issue final approval.
"Penn Traffic has been engaging in, and continues to engage in, an active process of soliciting and responding to interest from a number of parties, including parties who have expressed interest in a 'going concern' of all or substantially all of the company's stores and assets," he told SN yesterday.
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