It’s been revealed that Shopko has taken over 14 failed ALCO stores, despite shutting down stores itself. Shopko administrators say the former ALCO stores are just the right size for its downsized Shopko Hometown format.
Apparently those 14 former ALCO stores are located in Minnesota, North Dakota, South Dakota and Texas. Local news sources discovered that ShopKo was advertising for open jobs at former ALCO locations. It must be remembered that Shopko’s long term plan is to shutdown their larger stores and open smaller stores with fewer employees, because the U.S. economy can no longer support big box stores.
Texas based ALCO went bankrupt busted back in October 2014, but that didn’t stop people from being shocked when their local ALCO store shutdown, like the mayor of American Falls in Idaho.
Other Shopko news reveals that Shopko is not hurting for cash (maybe as a result of selling off their pharmacy ops), as the Wisconsin based retailer continues to donate cash to charities and schools: $400 to the ‘Jogging Jokers’ at the Montana School for the Deaf and Blind. $2000 to the Saint Peter School District, Minnesota. $2,000 to the Humboldt Community School District, Iowa. $2000 to the Oelwein Community School District, Iowa.
In 2014 the Shopko Foundation gave out $1.1-million to charities and schools.
Shopko is owned by an affiliate of Sun Capital Partners, which is focused on leverage buyouts, equity, debt and other investments.
2015 big Shopko store shutdowns:
Illinois: Two years old Sullivan Shopko in April, at least 30 jobs lost.
Kentucky: Hodgenville Shopko Hometown store will shutdown in April.
Missouri: Tarkio Shopko Hometown store will shutdown in April.
Ohio: Shopko to shutdown its Greenfield, Archbold, Montpelier and Newton Falls stores by April, at least 70 jobs will be affected.
South Dakota: Avera FastCare health clinic located inside the Aberdeen Shopko shutdown. Local news reports said there are currently no plans to replace it.
Utah: Provo Shopko will shutdown by 15 April 2015. Bountiful (apparently actually located in West Bountiful even though the address is in Bountiful?) Shopko will shutdown in April.
Wisconsin: Shopko will shutdown its Ashland Hometown store by April, at least 29 jobs lost.
Of importance, a major retail landlord just modified its lease agreement with Shopko. The deal makes it easier for Spirit Realty Capital to evict Shopko in favor of new tenants (Shopko also got paid $18.8-million for the inconvenience of being kicked out). The retail landlord said it wanted to reduce its reliance on Shopko for revenue!
2014 shutdowns:
Wisconsin: ShopKo killed off 40 jobs at its Ashwaubenon corporate HQ. Company administrators blame the bad economy for their “reorganization”. A Madison store was shutdown, 66 jobs lost.
Ohio: Georgetown Shopko shutdown.
Indiana: Shopko issued a WARN in November saying it will shutdown a distribution center. The shutdown will be completed by September 2015, at least 95 jobs lost. A Loogootee Shopko was shutdown, at least 14 jobs lost. The Petersburg and Bloomfield Shopkos were also shutdown.
It should be noted that Shopko has been quietly and slowly shutting down their large format stores since 2001.
Shopko opens new Idaho store, while closing of 14 others!