Penn Traffic suffers loss of $41.7 million in fiscal 2008
April 18, 2008
by Josh Sosland
SYRACUSE, N.Y. — The Penn Traffic Co., which operates and supplies more than 220 Northeastern U.S. supermarkets, sustained a loss of $41,708,000 in the year ended Feb. 2, which compared with a loss of $27,950,000 in the same period a year earlier. Net sales in the year totaled $1,219,541,000, down 6% from $1,293,861,000 in fiscal 2007.
Fiscal 2008 results included a loss from discontinued operations of $11.3 million and non-recurring charges of $19.6 million for items such as professional fees, closed-store costs, fixed-asset policy change, legal costs, personnel engagement costs, severance and Chapter 11 reorganization expenses. Fiscal 2007 results included a loss from discontinued operations of $587,000 and non-recurring charges of $13.7 million.
"While much work remains to be done, Penn Traffic’s fiscal 2008 financial results overall demonstrate our progress toward stabilizing the business, improving gross margins, enhancing the in-store customer experience and investing in the most promising locations in Penn Traffic’s core store portfolio," said Gregory J. Young, president and chief executive officer.
In January, Penn Traffic Co. closed its Penny Curtiss commercial bakery operation as part of its strategy for improving the company’s long-term financial performance and further focusing its resources on enhancing the in-store experience for its customers.