Why is Price Chopper so angry?
On the face of it, its bid seems lower, and for fewer Penn Traffic supermarkets, meaning the other stores would be auctioned off in court. A. Actually, Price Chopper’s bid is higher — on a per-store basis. Price Chopper’s bid of $54 million for 22 stores breaks down to approximately $2.5 million per store. Tops $85 million bid for 79 stores breaks down to approximately $1.1 million per store. Price Chopper’s president and CEO, Neil Golub, said the company had made the $54 million offer and put a down a payment on the deal, so Penn Traffic is contractually obligated to complete the transaction with Price Chopper. Q. Is there proof of that? A. Yes. U.S. Securities and Exchange Commission filings by Penn Traffic show the company made the asset purchase agreement with Price Chopper on Dec. 15. The documents also show Price Chopper made a $5.4 million deposit — 10 percent — with Penn Traffic toward that purchase on Dec. 16. Q. Will that contract hold up in bankruptcy court? A. Hard to say a
