SCHUMER ATTENDS RENAMING CEREMONY FOR FAYETTEVILLE P&C SUPERMARKET; SEN LED SUCCESSFUL FIGHT TO AVOID LIQUIDATION, HELPING KEEP PENN TRAFFIC MARKETS OPEN AND THOUSANDS OF WORKERS ON THE JOB
Schumer Attended Fayetteville P&C Supermarket Renaming as a "Tops" Supermarket - P&C Was One Once Owned by Now Bankrupt Penn Traffic Company
Schumer Successfully Fought To Secure a Bidder That Would Not Liquidate Penn Traffic's Assets, Throwing Thousands out of Work
Schumer Pressured Penn Traffic Creditors To Give Company More Time To Find a Bidder That Would Keep Stores Open, and Pushed Penn Traffic To Only Accept Non-Liquidation Bids
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U.S. Senator Charles E. Schumer today attended a renaming ceremony during which Fayetteville's P&C supermarket became a "Tops" supermarket. The event comes almost a year after Senator Schumer got involved in the bankruptcy of P&C's parent company, Penn Traffic, which owned over 70 supermarkets in New York and Pennsylvania, and employed over 4,000 people in New York. During the bankruptcy Schumer successfully fought tooth and nail to find a bidder that would keep the most stores open and operating and the most employees on the job. Schumer pressured Penn Traffic's creditors to give the company more time to secure a "going concern" bidder, and then pressured the company not to accept a lowball liquidation bid. In the process, Schumer helped save thousands of jobs in New York.
Schumer was joined by Tops Markets President and CEO, Frank Curci and Manlius Town Supervisor Edmond Theobald to mark the renaming of the store.
"Across the state we have scores of stores open for business and thousands of employees on the job, when just a year ago liquidation looked like the most likely outcome," said Schumer. "So today is a day to celebrate our hard work, and focus on the future so that Tops, and companies like it, can grow and prosper and provide work for thousands more."
Senator Schumer led the fight to save the Penn Traffic stores starting in December of last year when he placed a personal call to GE Capital CEO Michael Neal, asking him to keep Penn Traffic open and operating through the end of January. At the time Schumer said the move would potentially allow Penn Traffic to line up a buyer that would not liquidate their 53 supermarkets in New York - before Schumer's call, GE Capital, Penn Traffic's main creditor, wanted to cut off the company's line of credit by the end of the December, forcing them into the arms of a bidder with an intention of liquidating the stores.
Due to Schumer's request, GE Capital extended the credit line to the end of January, averting the very real possibility that 4,000 New Yorkers would have been laid off at Christmas time. The extra month gave Penn Traffic time to solicit bidders, such as Tops Markets, that would keep the greatest number of stores open. Once the extra time was secured, Schumer then successfully pressured both GE Capital and Penn Traffic to not rush to select a bidder that would liquidate some of Penn Traffic's assets, and to seek out the bidder that would keep the most stores open.
Schumer also held rallies with employees at multiple Penn Traffic locations across the state to pressure the company and its creditors to select a bidder that would keep the maximum number of stores open and people employed. In the end, Schumer's efforts allowed Tops Markets to put forth a bid for that allowed them to keep the vast majority of NYS based stores open and employees on the job.
