SYRACUSE, N.Y. -- A federal bankruptcy court on Thursday gave its approval to The Penn Traffic Co.'s plans to sell off nine of its Big Bear stores in Ohio. The Syracuse-based regional grocer also will begin going-out-of-business sales starting Sunday at 51 other Big Bear stores, a process that will likely last four to eight weeks, said company spokesman Joe Ramirez. Under the plan approved yesterday by the U.S. Bankruptcy Court in White Plains, N.Y., Pittsburgh-based Giant Eagle will pay $46.8 million for seven stores in Columbus, Marietta and Newark, Ohio. Penn Traffic will sell its Big Bear store in The Plains, Ohio, to Bob Bay and Son. Co., while Needler Enterprises Inc. will purchase the store in Chillicothe, Ohio. Before the sale was approved, Penn Traffic operated 211 supermarkets in New York, New Hampshire, Vermont, Pennsylvania, Ohio and West Virginia. Its supermarkets operate under the names P&C, Big Bear, Quality and Bi-Lo. It also supplies 144 licensed franchisees and independent grocers. It has approximately 16,000 employees, including about 5,000 who work for Big Bear stores. The company operated 67 Big Bear stores in Ohio and West Virginia but decided to close 12 of those stores prior to last week's auction in federal bankruptcy court. Giant Eagle also agreed to acquire the inventory of four of the stores it is buying, Ramirez said. There will not be liquidation sales at those four stores but they will be closed sometime prior to the change of ownership, although there are no specific dates yet set, Ramirez said. Since filing for bankruptcy in May, Penn Traffic's losses have totaled $21.4 million through October, according to the most recent court documents. The company has until Jan. 29 to file a reorganization plan with the court but can ask for an extension if it needs one. The company has said it wants to finish its reorganization as quickly as possible. As part of its proposed restructuring, Penn Traffic is closing 41 other stores scattered throughout four states. The closings would eliminate 2,000 jobs but generate about $22 million for Penn Traffic. All 41 stores are expected to close by mid- to late-December and are conducting court-approved going-out-of-business sales. This is the second time in four years that Penn Traffic had gone through bankruptcy reorganization. Penn Traffic lost more than $324 million between 1994 and 1998 before declaring bankruptcy for the first time in 1999. It closed more than four dozen stores and shed $1.13 billion in debt by selling majority ownership to creditors. The company spent more than $185 million over the next few years revamping old stores, building new ones and introducing new promotional programs in an attempt to revive its business.

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