Wisconsin-based Shopko will close more than 70 percent of its stores. The news follows last month’s filing for Chapter 11 bankruptcy protection. The regional retailer, which reported 360 locations in its initial filing, began closing 105 stores last month. The updated closing list has the company shuttering more than 250 stores as its moves toward what reps call a “second chance” footprint of around 100 stores to avoid total liquidation.
The original Shopko store, which opened in April 1962, is among the locations currently holding going-out-of-business sales. The toy industry effect is expected to be minimal, though as The Toy Book previously reported, Melissa & Doug and Hasbro made the list of the company’s top 30 unsecured creditors with $787,000 and $708,000 owed, respectively.
Who remembers Cabbage Patch Dolls?! Which decade was this frenzy happening in-store? #tbt
Posted by Shopko on Thursday, September 29, 2016
Sun Capital Partners Inc., a private investment firm focused on leverage buyouts, equity, debt, and other investments, owns Shopko. The firm acquired Shopko in a $1.2 billion leveraged buyout in 2005, followed by what was, at the time, the largest sale-leaseback of stores in retail history.
Shopko’s loss will be felt in the smaller, largely rural communities that it served — communities that can’t support a larger big box retailer.