EXHIBIT 99.2
                                                                   ------------


December 12, 2006


Mr. Greg Young
Co-Chief Operating Officer
The Penn Traffic Company
P.O. Box 4737 Syracuse, NY 13221

Dear Greg:

On behalf of The Penn Traffic Company Board of Directors,  it is my pleasure to
offer you the position of Executive  Vice President - Chief  Operating  Officer
reporting directly to the President & Chief Executive Officer.  Your employment
in this capacity will begin immediately. While this letter is not a contractual
agreement, it does contain the major elements of our offer to you.

     1.    SALARY:  Your  starting  salary  will be $400,000  per year with,  a
           performance  and  salary  review  within  the  first  six  months of
           employment in this role. 2. MANAGEMENT PERFORMANCE INCENTIVE PROGRAM
           (BONUS):  60% of your base salary at 100% of Plan and  increasing to
           twice (120%) that amount for exceeding Plan.

     3.    CHANGE IN CONTROL: See attached document.

     4.    EQUITY:  You will  participate in the Company plan and receive stock
           commensurate with your position at the time the plan is executed for
           the management team.  Additionally you will receive 50,000 Shares of
           Phantom  Stock  based on the  Stock  price  on the day you  formally
           accept the Board of Directors  offer of this  position  (e.g. if the
           Shares are  trading at $15.00  per share on the  effective  date and
           increase to $20.00 per share on May 1, 2009,  the Company  would pay
           you $250,000 ($5.00 per share x 50,000 shares).

     5.    BOARD OF DIRECTORS:  a seat on the Board of Directors is included in
           this offer.





Page 2
Greg Young
December 12, 2006


It is important to reiterate  that this letter is an offer of employment and in
no way should be construed to be an  employment  contract for a definite  term.
Employment at The Penn Traffic  Company is at will,  subject to  termination by
the Company or you at any time.

Greg, we look forward to working with you in your new capacity. If you have any
questions regarding this offer or the position, please contact me directly.


Sincerely,

/s/ John Burke
John Burke
Chairman, Compensation Committee
Member, Board of Directors
The Penn Traffic Company

Enclosure: Change in Control Agreement


cc: Robert Kelly, Chairman, Board of Directors
    Robert Panasuk, President & Chief Executive Officer




As agreement with the terms of this letter, please sign one copy of this letter
and retain a second  copy for your  files.  Please  return the  original  to my
attention ____________________________, 2006.




I, Greg Young,  accept this offer of  employment  on this 12th day of December,
2006.


/s/ Greg Young
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(Signature)