Shopko secures approval for bid procedures of pharmacy assets sale

By Sarah Lizee

Olympia, Wash., Jan. 17 – Shopko obtained court approval of the bid procedures for the sale of its pharmacy assets, according to an order filed Thursday in the U.S. Bankruptcy Court for the District of Nebraska.

Bids for the pharmacy assets will be due by 5 p.m. ET on Jan. 21, and an auction will be held on Jan. 23.

Bids at auction must exceed the previous bid by at least 5%.

A sale hearing is scheduled for Jan. 28.

As previously reported, the company is also soliciting bids for potential plan sponsors.

Under those proposed procedures, bids will be due by 5 p.m. ET on Feb. 21, and the auction would be held on Feb. 25. Minimum overbids must exceed the baseline bid by at least 1%.

If a stalking horse bidder is selected but is not the winning bidder, Shopko will pay it a 3% break-up fee and reimburse up to $1 million of its sale-related expenses.

Shopko is a Green Bay, Wis., operator of general merchandise stores throughout the Central, Western and Pacific Northwest regions of the United States. The company is a $3 billion retailer that operates more than 360 stores in 26 states. The Chapter 11 case number is 19-80064.

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