Penn Traffic Receives SEC Subpoenas
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.
Panera Bread to Expand in California
Richmond Heights, Mo., Panera Bread announced a franchise agreement with Pangenera, LLC for expansion in California. The group plans to develop 15 bakery-cafes in San Mateo, Santa Cruz and Santa Clara counties by 2010. Panera Bread currently operates 773 units (243 company-owned and 530 franchised).
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Chain Store Sales Fall in Latest Week
New York City, U.S. chain store sales fell 1% for the week ended May 28, compared to a 0.2% dip the previous week, according to a joint report from the International Council of Shopping Centers (ICSC) and UBS. Cooler weather slowed consumer purchases of seasonal goods, taking the index to its lowest reading in nine weeks, according to the report. Sales for the same week a year ago rose 3.1%, after a 3.7% increase the preceding week.
“With the industry facing a tough comparison in May 2005 against May 2004’s 5.7% increase and less-than-favorable weather, the industry performed reasonably well over the past four weeks,” said Michael Niemira, ICSC chief economist and director of research, in a statement.
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