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The Penn Traffic Company was a food service company founded in 1854 in
Johnstown, Pennsylvania Johnstown is the largest city in Cambria County, Pennsylvania, United States. The population was 18,411 as of the 2020 United States census, 2020 census. Located east of Pittsburgh, it is the principal city of the Metropolitan statistical area ...
. The company eventually evolved into a general merchandise department store. By the early 1960s, it also returned to the food business through the acquisition of Super Value Corporation, which operated the 10-store Riverside
supermarket A supermarket is a self-service Retail#Types of outlets, shop offering a wide variety of food, Drink, beverages and Household goods, household products, organized into sections. Strictly speaking, a supermarket is larger and has a wider selecti ...
chain. In 1982, the company sold its department stores and concentrated solely on the food and
supermarket A supermarket is a self-service Retail#Types of outlets, shop offering a wide variety of food, Drink, beverages and Household goods, household products, organized into sections. Strictly speaking, a supermarket is larger and has a wider selecti ...
business. A series of financial troubles led to Penn Traffic's Chapter 11 bankruptcy filing in November 2009, and sale of assets to Tops Markets in early 2010. At the time of sale, Penn Traffic was the
parent company A holding company is a company whose primary business is holding a controlling interest in the Security (finance), securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own Share ...
for 79
retail Retail is the sale of goods and services to consumers, in contrast to wholesaling, which is the sale to business or institutional customers. A retailer purchases goods in large quantities from manufacturers, directly or through a wholes ...
supermarket A supermarket is a self-service Retail#Types of outlets, shop offering a wide variety of food, Drink, beverages and Household goods, household products, organized into sections. Strictly speaking, a supermarket is larger and has a wider selecti ...
s in the
Northeastern United States The Northeastern United States (also referred to as the Northeast, the East Coast, or the American Northeast) is List of regions of the United States, census regions United States Census Bureau. Located on the East Coast of the United States, ...
, concentrating mostly in
Central New York The central region of New York state includes: * Auburn in Cayuga County * Cortland in Cortland County * Oneida in Madison County * Syracuse, the largest city of Central New York, in Onondaga County * Fulton and Oswego in Oswego County ...
. Its headquarters were in
Syracuse, New York Syracuse ( ) is a City (New York), city in and the county seat of Onondaga County, New York, United States. With a population of 148,620 and a Syracuse metropolitan area, metropolitan area of 662,057, it is the fifth-most populated city and 13 ...
. Penn Traffic formerly had operated supermarkets in
Pennsylvania Pennsylvania, officially the Commonwealth of Pennsylvania, is a U.S. state, state spanning the Mid-Atlantic (United States), Mid-Atlantic, Northeastern United States, Northeastern, Appalachian, and Great Lakes region, Great Lakes regions o ...
,
Vermont Vermont () is a U.S. state, state in the New England region of the Northeastern United States. It borders Massachusetts to the south, New Hampshire to the east, New York (state), New York to the west, and the Provinces and territories of Ca ...
, and
New Hampshire New Hampshire ( ) is a U.S. state, state in the New England region of the Northeastern United States. It borders Massachusetts to the south, Vermont to the west, Maine and the Gulf of Maine to the east, and the Canadian province of Quebec t ...
under the Insalaco's, Bi-Lo/Riverside/U-Save, P&C and
Quality Quality may refer to: Concepts *Quality (business), the ''non-inferiority'' or ''superiority'' of something *Quality (philosophy), an attribute or a property *Quality (physics), in response theory *Energy quality, used in various science discipli ...
trade names. The company also operated a wholesale food distribution business, purchased in 2008 by C&S Wholesale Grocers, which served approximately 121 independent operators.


History


19th century

Penn Traffic traces its origins back to the 1850s, when it was a trading post in
Johnstown, Pennsylvania Johnstown is the largest city in Cambria County, Pennsylvania, United States. The population was 18,411 as of the 2020 United States census, 2020 census. Located east of Pittsburgh, it is the principal city of the Metropolitan statistical area ...
. Over the years, Penn Traffic evolved first into a general-merchandise department store and later a large
retail Retail is the sale of goods and services to consumers, in contrast to wholesaling, which is the sale to business or institutional customers. A retailer purchases goods in large quantities from manufacturers, directly or through a wholes ...
and
wholesale Wholesaling or distributing is the sale of goods or merchandise to retailers; to industrial, commercial, institutional or other professional business users; or to other wholesalers (wholesale businesses) and related subordinated services. In ...
supermarket A supermarket is a self-service Retail#Types of outlets, shop offering a wide variety of food, Drink, beverages and Household goods, household products, organized into sections. Strictly speaking, a supermarket is larger and has a wider selecti ...
company.


20th century

In 1922, it established Johnstown's first radio station, WTAC, which was licensed until early 1926. Riverside, founded in
Brookville, Pennsylvania Brookville is a borough in Jefferson County in the U.S. state of Pennsylvania, northeast of Pittsburgh. As of the 2010 census, the population was 3,933. Founded in 1830, it is the county seat of Jefferson County. History The area was initial ...
, in 1928, became part of the Penn Traffic family in 1962, and began developing the Bi-Lo format in the 1980s, unrelated to the
chain A chain is a serial assembly of connected pieces, called links, typically made of metal, with an overall character similar to that of a rope in that it is flexible and curved in compression but linear, rigid, and load-bearing in tension. A ...
in the Mid-Atlantic. Penn Traffic operated 43 supermarkets under the Bi-Lo trade name across Pennsylvania, and also distributed food to 51 franchised and independent supermarkets from its DuBois, Pennsylvania, distribution facility. Quality Markets, founded in
Jamestown, New York Jamestown is a city in southern Chautauqua County, New York, United States. The population was 28,712 at the 2020 United States census, 2020 census. Situated between Lake Erie to the north and the Allegheny National Forest to the south, Jamesto ...
, in 1913, joined the Penn Traffic family in 1979. Penn Traffic operated a total of 34 supermarkets under the Quality trade name in southwestern New York and northwestern Pennsylvania. Penn Traffic's flagship department store in Johnstown, challenged by economic decline, permanently closed after the 1977 flood. The company sold its six department stores and two women's specialty-store leases to Crown American Corporation, owner of the
Hess's Hess's, originally known as Hess Brothers, was a department store chain based in Allentown, Pennsylvania. The company was founded a single store in 1897, and grew to nearly 80 stores by its commercial peak in the late 1980s. The chains stores were ...
department store chain, in 1982 in order to concentrate on the
supermarket A supermarket is a self-service Retail#Types of outlets, shop offering a wide variety of food, Drink, beverages and Household goods, household products, organized into sections. Strictly speaking, a supermarket is larger and has a wider selecti ...
business. Miller, Tabak, Hirsch & Company, a
New York City New York, often called New York City (NYC), is the most populous city in the United States, located at the southern tip of New York State on one of the world's largest natural harbors. The city comprises five boroughs, each coextensive w ...
-based investment group, began its takeover bid for Penn Traffic in 1986. Early takeover attempts were resisted by management but by 1987, Penn Traffic agreed to an offer by an affiliate of the investment firm and the company was briefly taken private for $131 million (~$ in ). In 1988, under then-chairman Gary Hirsch, Penn Traffic began an acquisition program. Hirsch first took Penn Traffic public, raising $25 million, and then added Syracuse-based P&C Food Markets for $219 million. In 1989, Penn Traffic acquired
Ohio Ohio ( ) is a U.S. state, state in the Midwestern United States, Midwestern region of the United States. It borders Lake Erie to the north, Pennsylvania to the east, West Virginia to the southeast, Kentucky to the southwest, Indiana to the ...
chain
Big Bear Stores Big Bear Stores was an American regional supermarket chain operating in the U.S. states of Ohio and West Virginia between 1933 and 2004. The company was founded in Columbus, Ohio, and was headquartered there until its acquisition by Syracuse, Ne ...
for $341 million (~$ in ).


P&C Foods

P&C Foods began in 1944 as the Producers and Consumers food cooperative in
Ithaca, New York Ithaca () is a city in and the county seat of Tompkins County, New York, United States. Situated on the southern shore of Cayuga Lake in the Finger Lakes region of New York (state), New York, Ithaca is the largest community in the Ithaca metrop ...
, as a way for farmers in
upstate New York Upstate New York is a geographic region of New York (state), New York that lies north and northwest of the New York metropolitan area, New York City metropolitan area of downstate New York. Upstate includes the middle and upper Hudson Valley, ...
to get their products to market efficiently. Until 2010, Penn Traffic operated 70 P&C supermarkets serving the
Syracuse metropolitan area The Syracuse Metropolitan Statistical Area, as defined by the United States Census Bureau, is an area comprising three counties in central New York, with the city of Syracuse as its core. The three counties are Onondaga, Madison, and Oswego ...
and other communities in upstate New York,
Vermont Vermont () is a U.S. state, state in the New England region of the Northeastern United States. It borders Massachusetts to the south, New Hampshire to the east, New York (state), New York to the west, and the Provinces and territories of Ca ...
,
New Hampshire New Hampshire ( ) is a U.S. state, state in the New England region of the Northeastern United States. It borders Massachusetts to the south, Vermont to the west, Maine and the Gulf of Maine to the east, and the Canadian province of Quebec t ...
, and
Pennsylvania Pennsylvania, officially the Commonwealth of Pennsylvania, is a U.S. state, state spanning the Mid-Atlantic (United States), Mid-Atlantic, Northeastern United States, Northeastern, Appalachian, and Great Lakes region, Great Lakes regions o ...
. P&C was also a major wholesaler in upstate New York; from its Syracuse warehouse, the company served 99 independent supermarkets in central New York, the majority of which still operate under the Big M franchise trade name. In 1997, a new ballpark for the
Syracuse Chiefs Syracuse most commonly refers to: * Syracuse, Sicily, Italy; in the province of Syracuse * Syracuse, New York, USA; in the Syracuse metropolitan area Syracuse may also refer to: Places * Syracuse railway station (disambiguation) Italy * Provi ...
opened as
P&C Stadium NBT Bank Stadium is a publicly owned, 10,815-seat, minor league baseball stadium in Syracuse, New York. It is the home stadium for the Syracuse Mets Triple-A (baseball), Triple-A baseball team of the International League. The stadium, owned and ...
. Penn Traffic owned the naming rights for nine baseball seasons. The last P&C Foods branded grocery store closed on January 21, 2012, in
Bath, New York Bath is a town in Steuben County, New York, United States, with an area of 96.3 square miles (249 km2) and a population of 11,426 in 2020. Its largest settlement is the Village of Bath, which has an area of 2.9 sq mi (7.5 km2) and a ...
, when the building was sold to Moran Foods, owner of
Save-A-Lot Save A Lot Food Stores Ltd. is an American discount supermarket chain store headquartered in St. Ann, Missouri, in Greater St. Louis. It has about 720 independently owned and operated stores across 32 states in the United States with over ...
, by order of the FTC. The P&C name survives today in Cortland and Ithaca under new owners.


Big Bear

When the first Big Bear store opened in 1933, it marked the beginning of self-service supermarket operations in the
Midwest The Midwestern United States (also referred to as the Midwest, the Heartland or the American Midwest) is one of the four census regions defined by the United States Census Bureau. It occupies the northern central part of the United States. It ...
. Big Bear was the first supermarket in the country to use cashier-operated motorized
conveyor belts A conveyor belt is the carrying medium of a belt conveyor system (often shortened to a belt conveyor). A belt conveyor system consists of two or more pulleys (sometimes referred to as drums), with a closed loop of carrying medium—the conveyor b ...
and the first to use an
IBM International Business Machines Corporation (using the trademark IBM), nicknamed Big Blue, is an American Multinational corporation, multinational technology company headquartered in Armonk, New York, and present in over 175 countries. It is ...
mainframe computer A mainframe computer, informally called a mainframe or big iron, is a computer used primarily by large organizations for critical applications like bulk data processing for tasks such as censuses, industry and consumer statistics, enterprise ...
. In the 1980s, its Big Bear Plus stores combined a supermarket with a general merchandise store. Penn Traffic operated 70 Big Bear and Big Bear Plus stores in
Ohio Ohio ( ) is a U.S. state, state in the Midwestern United States, Midwestern region of the United States. It borders Lake Erie to the north, Pennsylvania to the east, West Virginia to the southeast, Kentucky to the southwest, Indiana to the ...
and
West Virginia West Virginia is a mountainous U.S. state, state in the Southern United States, Southern and Mid-Atlantic (United States), Mid-Atlantic regions of the United States.The United States Census Bureau, Census Bureau and the Association of American ...
until early 2004. As a result of Penn Traffic's 2003
bankruptcy Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the deb ...
filing, these stores were either closed or sold to other companies, such as grocery retailer
Giant Eagle Giant Eagle, Inc. is an American supermarket chain with stores in Pennsylvania, Ohio, West Virginia, Indiana, and Maryland. The company was founded in 1918 in Pittsburgh, Pennsylvania, and incorporated on August 31, 1931. ''Supermarket News'' ...
, while other properties were left vacant and still remain vacant. The
Columbus, Ohio Columbus (, ) is the List of capitals in the United States, capital and List of cities in Ohio, most populous city of the U.S. state of Ohio. With a 2020 United States census, 2020 census population of 905,748, it is the List of United States ...
warehouses operated by Big Bear were also left vacant and subsequently torn down for redevelopment. In the early and middle 1990s, Penn Traffic continued to grow as it acquired and built other supermarkets in and near its primary markets. During this time, Penn Traffic entered the
Buffalo, New York Buffalo is a Administrative divisions of New York (state), city in the U.S. state of New York (state), New York and county seat of Erie County, New York, Erie County. It lies in Western New York at the eastern end of Lake Erie, at the head of ...
and
Erie, Pennsylvania Erie is a city on the south shore of Lake Erie and the county seat of Erie County, Pennsylvania, United States. It is the List of municipalities in Pennsylvania, fifth-most populous city in Pennsylvania and the most populous in Northwestern Pen ...
markets with the Quality trade name and made substantial investments to enhance its store base and distribution network, while maintaining steady growth in cash flow and profitability. In 1997, Hirsch hired Phil Hawkins, who was credited with saving the
Vons The Vons Companies, Inc. is a supermarket chain owned by Albertsons, with most of its locations in Southern California and the Las Vegas Valley. It is headquartered in Fullerton, California, and operates stores under the Vons and Pavilions ban ...
supermarket chain in
California California () is a U.S. state, state in the Western United States that lies on the West Coast of the United States, Pacific Coast. It borders Oregon to the north, Nevada and Arizona to the east, and shares Mexico–United States border, an ...
. Hawkins cut costs and fired 325 employees, including all five division heads, some with 20 years or more with Penn Traffic. As
CEO A chief executive officer (CEO), also known as a chief executive or managing director, is the top-ranking corporate officer charged with the management of an organization, usually a company or a nonprofit organization. CEOs find roles in variou ...
, Hawkins replaced USDA Choice meat in its butcher shops with a cheaper grade meat. In an effort to reposition its stores as value-focused, Hawkins slashed expenses by using generic grocery bags, postponing store maintenance, and reducing benefits to employees. In the Columbus market, prices did not uniformly drop and competitors, including
Kroger The Kroger Company, or simply Kroger, is an American retail company that operates (either directly or through its subsidiaries) supermarkets and multi-department stores throughout the United States. Founded by Bernard Kroger in 1883 in Cinc ...
and
Meijer Meijer Inc. (, ) is an American supercenter chain that primarily operates throughout the Midwestern United States. Its corporate headquarters are in Walker, Michigan. Founded in 1934 as a supermarket chain, Meijer is credited with pioneering ...
regularly beat Big Bear in third party cost comparisons. Meanwhile, better capitalized competitors, including
Wegmans Wegmans Food Markets, Inc. is a privately held American supermarket chain. It is now headquartered in Gates, New York, but was founded on January 30, 1916, in Rochester, New York. As of late 2024, Wegmans had 111 stores in eight states (New Yo ...
and Kroger, cut into market share. Same store sales fell 8.2% in fiscal 1998, while operating income declined another 6%, to $165 million ($ in ). In Columbus, where Kroger and Big Bear had once been neck and neck, Big Bear's market share dropped to 20% from 25%, while Kroger's rose to 54% from 44% in 1998, according to a survey by ''
The Columbus Dispatch ''The Columbus Dispatch'' is a daily newspaper based in Columbus, Ohio. Its first issue was published on July 1, 1871, and it has been the only mainstream daily newspaper in the city since ''The Columbus Citizen-Journal'' ceased publication in ...
''. Hawkins resigned before the first bankruptcy filing, March 1, 1999. In the late 1990s, Penn Traffic experienced a significant reduction in its profitability because of several merchandising and operational changes that had a negative impact on its business. By late 1998, the company realized that while it had strong consumer franchises, it was working under an untenable debt burden. To address this challenge, in early 1999 Penn Traffic negotiated an agreement with bondholders to restructure more than $1.1 billion in bond debt. In 1998, Penn Traffic sold its dairy operations, Sani-Dairy in
Johnstown, Pennsylvania Johnstown is the largest city in Cambria County, Pennsylvania, United States. The population was 18,411 as of the 2020 United States census, 2020 census. Located east of Pittsburgh, it is the principal city of the Metropolitan statistical area ...
, to Dean Foods. The dairy provided fluid milk, sour cream, ice cream, novelties, and cottage cheese to Penn Traffic stores and to private label customers. Penn Traffic completed its financial restructuring in June 1999 with more than 75% of its debt retired. In 2003, the company filed for bankruptcy again, this time resulting in the loss of Big Bear, one of their largest grocery chains. Fischer resigned one month into the second Chapter 11 filing, and was replaced by Steven G. Panagos, a corporate turnaround specialist. Panagos sold the Big Bear division, shuttered unprofitable stores, cut overhead and gave the underfunded pension plan back to the PBGC. Following the Chapter 11 filing, Robert Chapman was named the new CEO of Penn Traffic. Penn Traffic was named to the
S&P 500 The Standard and Poor's 500, or simply the S&P 500, is a stock market index tracking the stock performance of 500 leading companies listed on stock exchanges in the United States. It is one of the most commonly followed equity indices and in ...
in March 2003 only to have a scandal later that year negatively effect all of Fischer diligence. In 2007, two former Penn Traffic executives were indicted on fraud charges. In early 2008, Penn Traffic closed its private bakery, Penny Curtiss, citing the loss of the local
Aldi Aldi (German pronunciation: ), stylised as ALDI, is the common company brand name of two German multinational family-owned discount supermarket chains operating over 12,000 stores in 18 countries. The chain was founded by brothers Karl and ...
stores contract in August 2007 as the primary reason for the bakery's closing. The company said the bakery was contributing less than 4% of Penn Traffic's total annual revenue. In December 2008, Penn Traffic entered into a definitive agreement to sell its wholesale business segment to C&S Wholesale Grocers Inc. On November 18, 2009, Penn Traffic filed for
Chapter 11 bankruptcy protection Chapter 11 of the United States Bankruptcy Code (Title 11 of the United States Code) permits reorganization under the bankruptcy laws of the United States. Such reorganization, known as Chapter 11 bankruptcy, is available to every business, wh ...
following second-quarter 2009 losses of $7 million, the highest loss ever for the company, missed loan payments, and slower shipments from suppliers. The company initially intended to sell all of its assets by the end of 2009 and close on the deal or deals by the early January 2010. As of January 9, 2010, Penn Traffic was entertaining three separate bids: $54 million from Price Chopper for 22 P&C Foods stores, a private bid of $36.5 million from a team of professional liquidators for all of P&C's assets and $85 million from Tops Markets for all of Penn Traffic's stores.


Sale to Tops Markets

On January 25, 2010, Tops Markets' bid was signed off by a federal judge in U.S. Bankruptcy Court and was awarded the sale of all 79 Penn Traffic stores. Closing occurred on Jan 29, 2010. The amount of the sale will be slightly more than the previously agreed upon price of $85 million cash and assumption of approximately $70 million of Penn Traffic's debt.
The BiLo name survives in
Pennsylvania Pennsylvania, officially the Commonwealth of Pennsylvania, is a U.S. state, state spanning the Mid-Atlantic (United States), Mid-Atlantic, Northeastern United States, Northeastern, Appalachian, and Great Lakes region, Great Lakes regions o ...
, though three former locations have since converted to Tops. The P&C name (P&C Fresh) was relaunched by three ex-PT executives in
Cortland, New York Cortland is a city and the county seat of Cortland County, New York, United States. Known as the Crown City, Cortland is in New York's Southern Tier region. As of 2024, the estimated population of Cortland, New York, is 17,196, reflecting a dec ...
,
Ithaca, New York Ithaca () is a city in and the county seat of Tompkins County, New York, United States. Situated on the southern shore of Cayuga Lake in the Finger Lakes region of New York (state), New York, Ithaca is the largest community in the Ithaca metrop ...
, and
Sayre, Pennsylvania Sayre is a borough in Bradford County, Pennsylvania, United States. It is part of Northeastern Pennsylvania. It is the principal city in the Sayre, PA Micropolitan Statistical Area. It lies southeast of Elmira, New York, and southwest of Bin ...
; the Sayre, Pennsylvania store has since sold to Tops.


See also

* Tops Markets *
Kroger The Kroger Company, or simply Kroger, is an American retail company that operates (either directly or through its subsidiaries) supermarkets and multi-department stores throughout the United States. Founded by Bernard Kroger in 1883 in Cinc ...
*
Giant Eagle Giant Eagle, Inc. is an American supermarket chain with stores in Pennsylvania, Ohio, West Virginia, Indiana, and Maryland. The company was founded in 1918 in Pittsburgh, Pennsylvania, and incorporated on August 31, 1931. ''Supermarket News'' ...
*
Meijer Meijer Inc. (, ) is an American supercenter chain that primarily operates throughout the Midwestern United States. Its corporate headquarters are in Walker, Michigan. Founded in 1934 as a supermarket chain, Meijer is credited with pioneering ...
*
Save-A-Lot Save A Lot Food Stores Ltd. is an American discount supermarket chain store headquartered in St. Ann, Missouri, in Greater St. Louis. It has about 720 independently owned and operated stores across 32 states in the United States with over ...
*
Aldi Aldi (German pronunciation: ), stylised as ALDI, is the common company brand name of two German multinational family-owned discount supermarket chains operating over 12,000 stores in 18 countries. The chain was founded by brothers Karl and ...


References


External links


Penn Traffic
at
Bloomberg L.P. Bloomberg L.P. is an American privately-held financial, software, data, and media company headquartered in Midtown Manhattan, New York City. It was co-founded by Michael Bloomberg in 1981, with Thomas Secunda, Duncan MacMillan, Charles Ze ...

"CEO of Big Bear parent firm meets the troops"
''Columbus Business Journal'', June 9, 1997

NY Retail Roundup, March 10, 2010 {{Authority control 1854 establishments in Pennsylvania 2010 disestablishments in New York (state) Companies disestablished in 2010 Companies established in 1854 Companies that filed for Chapter 11 bankruptcy in 1999 Companies that filed for Chapter 11 bankruptcy in 2003 Companies that filed for Chapter 11 bankruptcy in 2009 Defunct companies based in Syracuse, New York Defunct supermarkets of the United States Hess's