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).
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.