SYRACUSE, N.Y. — "Aggressive cost-saving measures" helped Penn Traffic Co. here reduce its net loss for the first quarter, which ended May 2, to $9.3 million, compared with $12.4 million a year ago.
The company said the loss included $2.4 million in non-recurring charges related to professional fees, closed-store costs, legal costs related to the Securities and Exchange Commission investigation, severance pay, asset sales and Chapter 11 reorganization costs.
Non-recurring charges in the year-ago first quarter totaled $3 million. Sales for the quarter fell 5.7% to $200.1 million with five fewer stores, and same-store sales dropped 4.8%. The company attributed the sales declines to "lower volume and traffic trends resulting from competitors' new-store and remodel activity, as well as macro-economic conditions."
According to Gregory J. Young, president and chief executive officer, "The lower volume and traffic levels in the quarter were in line with our internal expectations and offset in part by our aggressive cost-saving measures, allowing us to continue narrowing Penn Traffic's losses. At the same time we continued to invest cash in store renovations and other strategic capital projects while paying down additional debt."
Read More of Today's Headlines