|
|
|
|
Ridgway BiLo on firm ground |
|
Written by Publisher
|
|
Thursday, 03 December 2009 |
Ridgway BiLo Foods isn’t going anywhere.
Steve Cleveland, owner of the store with business partner Andy Buehler, addressed Penn Traffic Company’s recent filing for bankruptcy, the third such filing in the past 13 years, according to Cleveland, and where Ridgway BiLo Foods stands in the future in regards to the possible dissolution of Penn Traffic.
“The only thing that is totally clear cut is this is an independent store and we are going to be open for business regardless of what our name is,” Cleveland said from his office at the store. “I don’t have a contract with C&S. I don’t have a sale agreement with them. I am buying from them and paying my bills, which puts me in a pretty good position.”
Ridgway BiLo Foods is currently supplied by C&S, but receives its shipments through Penn Traffic.
“They continue to supply me with the cost of goods and present answers to the questions we have put forth to them over the last year, then I think it will be a great thing for our employees, our store and our customers,” Cleveland said. “If I don’t see that is the best avenue for either us or our customers or our future, then you look around and you go where you go.
“Area stores around us, Martin’s of DuBois is actually supplied by the same company that is supplying me – C&S. So, it’s potential that their full-fledged inventory would be available to me with the dissolving of Penn Traffic. I think that is going to be the case, and I hope that this is something that is good.”
Despite Ridgway BiLo Foods being an independent store, other area stores are directly affected as they are owned by Penn Traffic.
Cleveland predicts that Kane Quality and St. Marys BiLo, along with Sheffield Quality, will be sold off by Penn Traffic and remain open. Other stores in the region directly affected by the bankruptcy filing include BiLo stores in DuBois, Brookville, Clarion, Philipsburg, Tyrone, Meadville and three stores in Canton, Troy and Wellsboro.
“It is unfathomable to me that either one would remain not sold,” Cleveland said of the Kane and St. Marys locations. “I think the question is whether a chain comes in – whether it is Giant Eagle looking to go north or you’ve got Martin’s looking to go farther in the area – they are probably the only players there. I have been contacted by other wholesalers who are interested in the area – a company called AWI down in York, which is kind of like Mike’s in Johnsonburg, a Shur–Fine supplier. So, maybe they would come in and buy a block of stores. If that was the case they would buy the stores to find independent owners to buy from them.”
Cleveland states that he thinks the warehouse in DuBois will remain open and that his current supplier could make a move to purchase and operate the facility.
“I think the DuBois warehouse will remain open, but it is going to come under the ownership of C&S,” Cleveland said. “They are a big player. So, the idea is that about a year ago we went from the Penn Traffic company who was financially in trouble and has been for awhile. They had about a $1.5 billion buying power. C&S, the company we’ve been buying from for the last year, now has a $20 billion buying power. That should give us relief. I feel really strongly the dissolving of Penn Traffic is going to be a good thing for all of us long-term.
“I can almost assure you the St. Marys store will remain open, but it will remain open under other ownership – whether it is a different brand such as Martin’s or Giant Eagle or if it is just an independent that buys that store and buys from C&S and maintains the BiLo name or doesn’t maintain the Bilo name. All of that is going to come to fruition.”
According to Cleveland, Penn Traffic gave notice to its employees about the possible loss of employment and closings.
“I know they gave notice to the Pennsylvania employees – this is the Penn Traffic employees – that they had until Jan. 4, 2010, and at that point they would no longer be employed unless a sale occurred and that stuff will be worked out in the next couple weeks,” Cleveland said. “It has certainly been crazy and it is not fun to go through any of that – especially for the third time. But, we’re a little bit more separated right now.”
Cleveland owns the Ridgway BiLo Foods name and can continue to use it in the future. However, there is a chance the name of the store could change to take part in an advertising exchange with other local stores.
“What my name will be totally depends on what happens in St. Marys, what happens in Kane,” Cleveland said. “Currently, we share the BiLo name because we share advertising costs. I will have to just see what comes up. First of all, I own the Ridgway BiLo Foods name. So, I can keep that name as long as I want to. But, if another entity comes into St. Marys and it would make sense to change the name to match up for advertising purposes – because advertising is a very expensive part of our business. If it would make sense to match up, that is something we will look at.”
As far as the short- and long-term future, Cleveland is positive that the break from Penn Traffic could turn out to be a positive.
“I think short-term C&S will have to figure out the trucking issues,” Cleveland said. “They have some contingency plans. They kind of expected this. I think that long-term it gets us to the C&S variety we were locked out of by getting distributed through Penn Traffic. As awesome as Penn Traffic has been, with Paul Reitz starting the company in Brookville and moving into DuBois back in the day when Riverside was here. This store was the sixth independent franchise of the Riverside Company. Then Penn Traffic bought them out.
“I have sat on C&S’s advisory board since the day they came into Pennsylvania. Being on that end of it, and knowing how aggressive they have reached out for any of our questions or any of our issues, they have been working on a contingency plan for Penn Traffic’s bankruptcy since February of this year. They made it all the way to November, but most of it is already out there and laid out rock–solid. As anything, you would expect maybe the unexpected because you can have the greatest of plans and have little nuances here and there. I think it will come off cleanly. Every transition is not totally seamless, but I think we are prepared for this one. I do think it is going to better both Ridgway BiLo Foods and better the area as that resolves itself.”
One thing Cleveland hopes is that his inventory line and selection improves in the immediate future.
“I think C&S’s product line is greater than what Penn Traffic is carrying,” Cleveland said. “I feel excited about the fact that if Penn Traffic gets out of the way and we have direct access to C&S’s inventory – right now we’ve been doing it as a passthrough with the Penn Traffic Company – I can see that our inventory levels would increase and our variety would increase. Again, we will see how that pans out.”
|
|
Last Updated ( Thursday, 10 December 2009 )
|
|
|
|
