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PENN TRAFFIC COMPANY TO ACQUIRE 27 PETER J. SCHMITT SUPERMARKETS

 JOHNSTOWN, Pa., Jan. 4 /PRNewswire/ -- The Penn Traffic Company (AMEX: PNF) announced today that the United States Bankruptcy Court in Delaware has approved the acquisition by Penn Traffic of 27 supermarkets formerly operated by Peter J. Schmitt Co., Inc.
 The purchase price is approximately $28 million plus inventory of approximately $10 million. The acquisition is expected to close later this week.
 Penn Traffic plans to operate 23 of these stores which have a total of 900,000 square feet. Sales from these stores are estimated at approximately $275 million annually. Of the stores to be operated, six are located in Erie, Pa., 12 are in the greater Buffalo, N.Y., area and the balance are in smaller communities in which the company currently operates supermarkets. All but two of these stores will operate as Quality Markets. One will operate as a Riverside Market and one as a P&C Food Market.
 Gary D. Hirsch, chairman of the board of the Penn Traffic Company, stated, "This acquisition represents a significant milestone for our company. In one step, we have obtained the number one market share in Erie, Pa., and the number two market share in Buffalo, N.Y., thereby significantly enhancing our strong market share position in western Pennsylvania and upstate New York. Both of these markets are easily served by our Quality Markets distribution center in Jamestown, N.Y. Importantly, each of these stores operates in a mature marketplace contiguous to our existing operations."
 Hirsch added, "All of these stores can be serviced by existing non-store support operations. Accordingly, we are confident that after initial transition costs, these stores will be important contributors to the profitability of our company."
 Simultaneous with the acquisition, Penn Traffic expects to privately place $35 million of senior increasing rate notes due 1997.
 The Penn Traffic Company is one of the leading food retailers in the United States, operating 216 (including the stores to be acquired) supermarkets in upstate New York, western Pennsylvania, central Ohio and northern West Virginia, under the names of P&C Foods, Quality Markets, Riverside Markets, Bi-Lo Foods, Big Bear and Big Bear Plus. Additionally, the company operates wholesale food distribution businesses serving 132 licensed franchisees and 119 independent operators and a discount general merchandise business with 20 stores. Grand Union, in which Penn Traffic holds an indirect 17.8 percent equity interest, operates 303 supermarkets and food stores under the Grand Union and Big Star trade names in the eastern United States.
 -0- 1/4/93
 /CONTACT: Gary D. Hirsch, chairman of the board, 212-370-0040, or Claude J. Incaudo, president and chief executive officer, 315-453-0382, both of Penn Traffic/
 (PNF)


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

CD-MP -- PG008 -- 1345 01/04/93 13:34 EST
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Publication:PR Newswire
Date:Jan 4, 1993
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