Batesville, In. — Shopko, a leading operator of general merchandise stores throughout the Central, Western and Pacific Northwest regions of the U.S., announced that it, along with its subsidiaries, has filed voluntary petitions for a court-supervised financial restructuring under Chapter 11 of the United States Bankruptcy Code.
“We truly appreciate and are encouraged by the outpouring of support that we have received over the last 24 hours from our customers, communities, landlords, vendors, and government officials,” said Russ Steinhorst, Chief Executive Officer. “I also want to thank all of our teammates for their ongoing hard work and commitment.”
As part of the Court’s approval of first day motions, Shopko received authorization on a final basis from the Court to provide employee wages, healthcare coverages and other benefits, including retirement benefits, without interruption, and pay vendors and suppliers for authorized goods and services provided on or after the filing date. Additionally, customer programs, including gift cards and loyalty program, will be honored and continued in the ordinary course.
The Court’s approval also affirmed on an interim basis access to $480M debtor-in-possession (DIP) financing from certain of its prepetition secured lenders, led by Wells Fargo, N.A. as administrative agent, to help fund and protect its operations during the Chapter 11 process. This incremental liquidity will ensure that suppliers and other business partners and vendors will be paid in a timely manner for authorized goods and services provided during the Chapter 11 process, in accordance with customary terms.
Related to these activities, Kirkland & Ellis LLP is acting as the Company’s legal counsel, BRG is serving as restructuring advisor and Houlihan Lokey is acting as financial advisor.
This announcement is an important step towards protecting our future and ensuring our ability to continue delivering the high-quality products and services that our customers are accustomed to receiving.
We will be sure to communicate with everyone throughout our reorganization and give regular updates as important decisions and major developments take place.
