Report: Shopko preparing to file for bankruptcy

GREEN BAY, Wis. (WBAY) - Shopko is preparing to file for bankruptcy after its parent company has been unable to find a buyer for the Green Bay-based retailer, according to a report in Bloomberg.

Earlier this week, the discount retailer announced plans to close 39 stores in 19 states at the end of February following a liquidation sale that began Friday. Most of them are Shopko Hometown stores.

Bloomberg's unnamed sources say there is no guarantee Sun Capital will file for bankruptcy protection if selling the retailer fails, or that the investment firm will negotiate a plan to save the company.

Sun Capital bought Shopko in a bidding war for about $1 billion in 2005. Sun Capital's plan was to close under-performing stores and beef up merchandise to compete with the likes of Walmart and Target.

Debtwire reported Shopko asked its vendors last summer if they would charge the retailer less for their products to improve the stores' profits, according to Chain Store Age.

Shopko was founded in Green Bay in 1962. The company says it currently has 363 stores in 24 states.

FULL LIST OF CLOSING STORES

Leadville CO
Buena Vista CO
Bonners Ferry ID
Dwight IL
Webster City IA
Cherokee IA
Eldora IA
Anthony KS
Russell KS
Phillipsburg KS
Clay Center KS
Lyons KS
Larned KS
Brandenburg KY
Mahnomen MN
Paynesville MN
Albany MO
Plentywood MT
Lincoln NE
Ord NE
Kimball NE
Lovington NM
Oakes ND
Stanley ND
Lisbon ND
Mayville ND
Fairview OK
Redfield SD
Wagner SD
Webster SD
Dell Rapids SD
Presidio TX
Delta UT
Nephi UT
Blanding UT
Beaver UT
Spokane WA
Mauston WI
Greybull WY



 
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