Pharmacy closing; Shopko must meet March 14 deadline to avoid liquidation
Jan 30, 2019 | Community News |
Shopko and its affiliated companies on Jan. 16 filed for bankruptcy protection from creditors, citing assets of less than $1 billion and liabilities between $1 billion and $10 billion. The reorganization plan called for Shopko to close more than 100 stores and sell its pharmacy business to put it in a position to emerge from bankruptcy as a profitable, but smaller, company.
The sale of the pharmacy business was approved Jan. 28 in the U.S. District Court of Nebraska, generating $52 million from the sale of 120 pharmacies to competitors, according to an article in the Green Bay Gazette. Walgreens Co. purchased the assets of 63 of the 120 pharmacies available. CVS picked up another 13 locations in addition to stores it bought in December. It is unknown who might have purchased the Gallatin location at this time. The sale of the pharmacies generated less revenue than expected.
According to Gallatin Shopko Manager Peggy Simmons, there is no firm date for the closing of the Gallatin pharmacy at the date of this publication, and they are referring customers to other pharmacies to fill prescriptions due to low inventory. It is unknown how much longer the Gallatin pharmacy will remain open.
Surviving Shopko stores in Missouri are Gallatin, Trenton, El Dorado Springs, and Doniphan. Missouri stores which are definitely closing are Albany, Carrollton and Memphis.
Court documents laid out a schedule through April 15 that Shopko must meet in order to emerge from bankruptcy as a going concern that can still operate a smaller company.
Shopko’s financial reorganization also requires the company to find a buyer or an investor to infuse cash into the operation, but none has been found over the last year.
The timeline, filed in U.S. bankruptcy court in Nebraska, calls for Shopko officials to:
- Auction off the company’s remaining pharmacy assets by Jan. 26 and have the sales approved by Jan. 29.
- Secure a reorganization plan sponsor or show the company can finance operations post-bankruptcy by March 14.
- Get the bankruptcy judge’s approval of the reorganization plan by April 12.
- Emerge from bankruptcy by April 15.
Shopko has the support of its creditors for this plan, but the March 14 date looms large. Failure to meet that deadline ends the process and will result in the company’s liquidation.
