C&K Market Inc. has filed a voluntary petition for Chapter 11 bankruptcy protection to address legacy costs, sell or close underperforming stores and resolve debt issues. C&K’s operations are expected to continue as normal throughout the bankruptcy process as it develops a reorganization plan.
“Entering Chapter 11 was a difficult decision for our family,” Doug Nidiffer, chairman of the board, said in a press release. “We seriously considered our options and believe this approach is in the best interest of many of the communities we’ve served over the years. We will retain about two-thirds of our 60 stores, tighten our corporate structure and shed legacy costs.”
At the initial hearing in a few days, a number of first day motions will be filed, including one that will seek approval of a debtor in possession financing facility with U.S. Bank. C&K will continue to operate in the ordinary course of business during the bankruptcy as it reorganizes.
“The decision to sell or close about a third of our stores was extremely difficult,” said Gregory L. Sandeno, president of C&K Market. “We appreciate the dedication and hard work of all of our employees and are saddened that some cannot all continue with us. We anticipate we will eliminate approximately 20 percent of our positions as a result of selling or closing stores and restructuring on the corporate side.
“The positive news is that we will put our energies into the remaining stores with our family-friendly service, and intend to emerge from bankruptcy as a stronger, leaner company,” Sandeno said.