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BANKRUPTCY COURT APPROVES SALE OF MOST OF PETER J. SCHMITT'S OPERATING ASSETS

 BUFFALO, N.Y., Jan. 4 /PRNewswire/ -- Peter J. Schmitt Co., Inc., announced today that the U.S. Bankruptcy Court for the District of Delaware in Wilmington has approved the sale of most of Schmitt's operating assets, including its interest in up to 61 Bells, Freshmart and Loblaws supermarkets in New York and Pennsylvania, in three separate transactions with a total value of between $72 million and $77 million. All three sales are expected to close this week.
 In the first transaction, the Penn Traffic Company (AMEX: PNF) of Johnstown, Pa., will acquire assets from up to 12 of Schmitt's partnership stores, Schmitt's interest in one franchise store and up to two corporate stores, and related inventory, property, plant, equipment and leaseholds.
 In the second transaction, Scrivner, Inc., of Oklahoma City, will acquire Schmitt's assets or partnership interests in up to 14 partnership stores, franchisor interests in up to 15 franchise stores and up to four corporate stores; related inventory, property, plant, equipment and leasehold interests at selected stores; three parcels of property; contract rights and general intangibles, including the "Bells" trademark; and wholesale inventory, property, plant and equipment.
 In the third transaction, Penn Traffic will acquire Schmitt's interests in 11 partnership stores and up to two corporate stores and related inventory, property, plant, equipment, and leasehold interests.
 "We are very pleased that the court has approved these asset sales, which we feel are in the best interest of our creditors, partners, franchisees, customers and employees," said D. Clark Ogle, chairman, president and chief executive officer of Peter J. Schmitt. "These sales will maximize the value of our company to our creditors and enable Schmitt to file a confirmable plan of reorganization in February 1993. The sales will also minimize service disruptions to our customers and preserve as many jobs as possible.
 "Our senior lenders have consented to these sales, and we have already obtained the support of the majority of our partners, lessors and franchisees."
 Peter J. Schmitt Co. was founded in 1927 in Buffalo. The company, which filed for Chapter 11 reorganization protection on May 29, 1992, serves franchisees and independent food retailers in Western and Central New York and Northeastern Pennsylvania.
 -0- 1/4/93
 /CONTACT: Fredric J. Spar or Michael Freitag of Kekst and Company, 212-593-2655, for Schmitt/
 (PNF)


CO: Peter J. Schmitt Co., Inc.; Penn Traffic Company; Scrivner, Inc. ST: New York, Pennsylvania, Oklahoma IN: REA SU:

GK -- NY068 -- 1409 01/04/93 16:04 EST
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Publication:PR Newswire
Date:Jan 4, 1993
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