Wisconsin-based Shopko filed for Chapter 11 bankruptcy protection. The regional retailer will begin closing 105 stores immediately (see the closing list here).
The original Shopko store, opened in April 1962, is among the 16 locations closing in the retailer’s home state. The voluntary reorganization follows a revelation from McKesson Corp. in December that Shopko owes the pharmaceutical distributor more than $67 million in outstanding invoices. Toy industry effect is unknown as this time, but two toymakers made the list of the 30 largest unsecured creditors in the initial filing—Melissa & Doug ($787,00), and Hasbro ($708,000).
Companies and individuals seeking more information or to file a claim can visit the Shopko restructuring site or the case hub on Prime Clerk.
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.
