Syracuse, N.Y., The Penn Traffic Co. announced late Friday that it has been subpoenaed by the Securities and Exchange Commission (SEC) for documents concerning its promotional and allowance practices and policies.
The retailer said it continues to cooperate with the SEC and the U.S. Attorney’s office in their investigations and will comply with these subpoenas. Penn Traffic also said it has “placed an employee on leave of absence pending completion of these investigations.”
As a result of the investigations, Penn Traffic also said Friday that it would delay the finalization and release of its audited financial statements for its 2003, 2004 and 2005 fiscal years. These audited financial statements would not be completed before Aug. 30, the deadline for delivery of the statements in its $164 million revolving credit facility.
The Penn Traffic Company operates 109 supermarkets in Pennsylvania, upstate New York, Vermont and New Hampshire under the BiLo, P&C and Quality trade names.