Supermarket Files for Bankruptcy
Penn traffic files for Bankruptcy:
Penn Traffic is the owner of a chain of regional supermarkets on the east coast. Today, according to Reuters, they filed for Chapter 11 bankruptcy in Delaware.
This is a significant problem in our society if you haven’t already considered it. Small businesses across the country have been cut off from funding with the bankruptcy filings of Advanta and CIT. Other lenders are tightening lines of credit as well.
When a store can’t get financing to pay for orders, overhead, payroll, etc., the cash reserves dwindle and force a bankruptcy filing or outright closure and liquidation. Unfortunately, this won’t be the end of business bankruptcy filings which will continue to grow throughout the next year as the economy double dips.
Jay S. Jump
Jump Law Group
Seattle, WA
www.jumplawgroup.com
