BROOKINGS, Ore. — C&K Market here said Tuesday it has filed a voluntary petition for Chapter 11 bankruptcy protection to address legacy costs, sell or close underperforming stores and resolve debt issues.
The company said it plans to seek court approval of a debtor-in-possession financing facility with U.S. Bank and expects to continue operating "as normal" as it develops a reorganization plan throughout the bankruptcy process.
According to Doug Nidiffer, chairman of the 60-store chain, "Entering Chapter 11 was a difficult decision for our family. We seriously considered our options and believe this approach is in the best interests of many of the communities we've served over the years."
The company said it plans to sell or close approximately one-third of its stores while tightening its corporate structure and shedding legacy costs. The company did not define the legacy costs.
Gregory L. Sandeno, president, said the company expects to eliminate approximately 20% of its workforce. "The positive news is that we will put our energies into the remaining stores and intend to emerge from bankruptcy as a stronger, leaner company."
The company said last month it was selling its 15 free-standing pharmacies as part of an effort to focus on its core supermarket business, with all sales due to be completed by mid-November. At the time the company said the decision to sell the pharmacies came as part of a larger strategic review that had been going on for several months.
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