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
Buena Vista CO
Bonners Ferry ID
Webster City IA
Clay Center KS
Dell Rapids SD