Shopko encouraged by court and support
GREEN BAY -- Shopko has announced that its first-day motions to help facilitate continued operations while the company operates under Chapter 11 protection were approved by the U.S. Bankruptcy Court this week.
Shopko has a store that continues to operate on South Church Street in Watertown, despite other store closures nationwide.
“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,” Russ Steinhorst, chief executive officer, said. “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, health care 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 $480 million debtor-in-possession financing from certain of its pre-petition 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 adviser and Houlihan Lokey is acting as financial adviser.