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The Green Bay Press Gazette reports that “Shopko's parent company, Specialty Retail Shops Holding Corp., and 12 of its subsidiaries filed for Chapter 11 bankruptcy protection from creditors, citing excessive debt and a decline in brick-and-mortar retail store sales as customers' shopping patterns changed.”

The story says that “Shopko has until March 14 to find a way through  reorganization or it will have to liquidate its assets.” It already has announced the closure of 105 stores out of the 300 that it operates in the central U.S., West and Pacific Northwest.

Less than a month ago, Shopko said it was selling separate chunks of its pharmacy business to Kroger and Hy-Vee. The filing says it now will auction off the remainder of its pharmacy business, though it plans to move 20 optical centers - said to be doing well - from existing Shopko stores to standalone locations. 

In its bankruptcy filing, Shopko said its assets total less than $1 billion, and its liabilities are between $1 billion and $10 billion.
KC's View:
Yikes. That’s a big gap between assets and liabilities.

It is interesting to note that Shopko is owned by Sun Capital Partners, which recently was the subject of a Washington Post piece that talked - in less than glowing terms - about its ownership of Marsh Supermarkets and how that company’s bankruptcy filing seemed to have little regard for workers who had invested years of their lives in the company and were counting on pensions that ended up being dramatically underfunded. (You can read about it here if you’re interested.)

Makes me wonder if we’re going to get a sequel.