Penn Traffic: Difference between revisions

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. The move did not come as a surprise to industry insiders as Big Bear was Penn Traffic's albatross ; the chain was often high volume low profit company and officials realized this too late to save the crown jewel P&C Foods. Joseph V. Fischer was credited for a positive turn in momentum and had the moved the company in a positive direction. Joseph V. Fischer resigned one month into the second chapter 11 and was replaced by Steven G. Panagos, a well known corporate turnaround specialist. Steven Panagos successfully sold the Big Bear division, shuttered unprofitable stores, cut overhead and gave the underfunded pension plan back to the PBGC. Penn Traffic successfully emerged from bankruptcy a smaller, but healthier company. Post the chapter 11, Robert Chapman was named the new CEO of Penn Traffic. Penn Traffic was moved to the S&P 500 in March 2003 only to have a scandal later that year negatively effect all of Fischer diligence.