International News - Bankrupt Penn Traffic strives to turnaround firm

Penn Traffic, the 200-strong US regional grocer, has filed for Chapter 11 bankruptcy protection. The retailer blamed tough competition and increasing costs for its difficulties. A US$ 270 million (£165.3 million) debtor-in-possession facility has been arranged, which should enable Penn to run while reorganisation goes on. Steven Panagos has been made chief restructuring officer to lead a turnaround. Panagos has previously helped Federated Department Stores out of difficulties. Penn Traffic chief financial offer Martin Fox has left the business for personal reasons. Penn Traffic's fascias include Big Bear and Big Bear Plus, and the retailer has stores in New England, Ohio and West Virginia.