Penn Traffic in Deal to Sell Wholesale Business
Syracuse, N.Y. The Penn Traffic Co. has entered into a definitive agreement to sell its wholesale-business segment to C&S Wholesale Grocers, in an approximately $43 million transaction. The company said the move will enable it to focus on retail stores and customers, and dramatically improve its capital structure.
In a statement, Penn Traffic said the all-cash transaction, which includes the sale of about $13 million in accounts receivable to C&S, is expected to close by the end of the year.
Penn Traffic’s wholesale operation supplies more than 120 independent supermarkets in New York and Pennsylvania, accounting for $210 million, or about 20%, of Penn Traffic's revenues in fiscal 2008.