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02/06/10 12:53 PM

#600 RE: x2Up #599

TOPS NEWS TODAY

Buyer sought for stores in NNY
P&C MARKETS: Tops says they're too far from its core region
By SUSAN MENDE
JOHNSON NEWSPAPERS
SATURDAY, FEBRUARY 6, 2010
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Tops Markets is trying to find another unionized grocer to purchase seven former P&C stores in the north country, partly because they're too far from the Buffalo-based company's core service region, according to grocery union officials.

Tops has asked whether any union buyers are interested in former P&C stores in Watertown, West Carthage, Gouverneur, Canton, Potsdam, Massena and Ogdensburg.

Gregory P. Gorea, executive assistant for United Food and Commercial Workers Local 1, Oriskany, said union officials have informed Tops there likely is not a union buyer for the stores.

"Consequently, it is likely that if Tops does decide to sell these stores it would be to a non-union buyer," Mr. Gorea said in an e-mailed statement.

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"We have asked, and Tops has pledged that any Penn Traffic member that is displaced will be placed on a preferential hiring list for future openings at Tops," he said. "We have not been successful getting our members hired at many non-union retail grocers."

In an entry posted Wednesday, the UFCW Local 1 Web site states, "As for the north country stores, at this point in time, the company has informed us it is out of their footprint, and we are attempting to find a union buyer for these stores."

Hourly employees who work for Tops and those at former Penn Traffic Co. stores, including P&C, are union workers who are represented by UFCW Local 1. Price Chopper Inc., a non-union grocery chain based in Schenectady, is still interested in purchasing several P&C stores in the north country, according to Mona J. Golub, the company's vice president of public relations and consumer services.

"Our interest in the stores for which we submitted a bid has not waned," Ms. Golub said in an e-mail.

In November, Price Chopper submitted a bid of $12.3 million for P&C stores in Canton, Potsdam, Massena and Gouverneur.

Before Tops entered the bidding contest in late December, Price Chopper submitted a second bid, seeking 22 Penn Traffic Co. stores. The $54 million bid included the four St. Lawrence County stores as well as stores in Pulaski, West Carthage and Lowville.

After submitting a bid of $85 million in U.S. Bankruptcy Court, Tops acquired all of Penn Traffic's assets, including 79 stores. That deal closed Jan. 29.

Tops spokeswoman Katherine L. McKenna did not return phone calls Friday.

In an e-mail response, Miss McKenna said discussing the future of individual stores is premature.

"I'm unable to go into detail about specific store status, but what I can tell you is that Tops still has every intention of operating as many stores as possible and closing as few stores as possible," she wrote.

All 79 of the P&C stores purchased by Tops will be evaluated during the next month to determine which it will keep open, which it will close and which will be sold to another retailer, Miss McKenna wrote.

A review by the Federal Trade Commission also is expected to continue for a few more weeks.

U.S. Sen. Kirsten E. Gillibrand is asking Tops executives to keep as many stores open as possible to preserve jobs and grocery service, particularly in rural areas.

In a letter to Frank Curci, Tops chief executive officer and president, Sen. Gillibrand wrote, "In many towns the supermarket is a central hub of the community and I urge you to consider the employees and their families during evaluation of the economic vitality of the 79 stores."
http://www.watertowndailytimes.com/article/20100206/NEWS05/302069954