Shopko was founded in 1962 and currently operates 134 Shopko stores, 176 Shopko Hometown locations, 18 Shopko Pharmacy locations and 5 Shopko Express stores.
On January 16, 2019, Shopko, a leading operator of general merchandise stores throughout the Central, Western and Pacific Northwest regions of the U.S., announced that it, along with its subsidiaries, has filed voluntary petitions for a court-supervised financial restructuring under Chapter 11 of the United States Bankruptcy Code.
This announcement is an important step towards protecting Shopko’s future, the company said in a statement, and ensuring its ability to continue delivering the high-quality products and services that our customers are accustomed to receiving.
Shopka says they “are confident the outcome will be a stronger Shopko. We will be sure to communicate with everyone throughout our reorganization and give regular updates as important decisions and major developments take place.”
Stores will be closing in Iowa – including Webster City, Estherville and Hampton – and Minnesota. 38 store in total will close.
just a matter of time before the padlocks go on the doors, after selling the pharmacy, its the only thing that kept the store open and now its gone.
I guess that will end up being the decision of the Bankruptcy judge once all the claims against Shopko have been filed.
I did not read the filling with the court, however I imagine Sun Capital will want to get everything it can out of what is left of the company since there are no shareholders.
I just hope that the employees are not left with an empty bag when all is said and done.
I was not surprised as Bloomberg reported Dec 5th the possibility of a chapter 11 filing. I am also not surprised as the parent of Shopko, Sun Capital Partners, has a history of this kind of behavior.
In 2018, the Washington Post reported that Sun Capital had sold off assets belonging to Marsh Supermarkets, while leaving more than $80 million in debts to workers’ severance and pensions unpaid. The chain closed in 2017.
I later learned that Shopko was cut off by McKesson, their pharmaceutical supplier, on Dec. 27, 2018 because of a reported $67 million bill.
Both Shopko and Marsh Supermarkets were leveraged buyouts, and created large debt. Like Toys R Us and Bon-Ton, sales at Shopko were not covering the debt.
After Sun Capital Partners aquired Shopko in 2005, the real estate was sold for $815 million. Of course, Sun Capital starved the chain of any investment in it’s stores, which accounts for the way it looks inside.
Then why is everything on sale for 70% off?
Cuz they’s havin a sale. DUH.
You are a total Dumb Ass. If they are keeping the store open (which I doubt) why would they have 70% off sales. Everywhere you look there are signs they are closing. Christmas decorations still up and on sale. Empty shelves and floors all full of trash. very few people working. All signs it is failing.
I sat down and read your comment. To be honest, I thought it was common knowledge that retail establishments would mark down merchandise after Christmas to keep from having to inventory it, and store it away til the next season. Inventory is taxed in the new year, reduce inventory, reduce taxes.
Now then, the other concept that you seem not to understand is, when a company files for bankruptcy, creditors and suppliers are less than willing to extend credit to purchase merchandise until the Judge in the case makes a decision. That means the store has to pay cash for a while to get new merchandise.
You will notice that I did not have to resort to using vulgar language to get my point across. Would you talk that way to your Mother? Priest? Doctor?
Might as well close this overpriced one cashier store
Maybe you should shop at Affordables, or the outlet store at Opportunity Village.