Shopko supplier says retailer will soon file for bankruptcy

ASHWAUBENON, Wis. (AP) — A pharmaceutical drug supplier to Shopko says the Wisconsin-based retail chain is expected to file for bankruptcy next week.

McKesson Corp. says it supplied Shopko with $67 million in drugs since Nov. 11 but has not been paid since early December.

McKesson this week asked a judge for a restraining order to keep Shopko from selling the medications it has supplied. McKesson attorney Jeff Garfinkle said during a court hearing that Shopko is expected to file for bankruptcy protection Jan. 15.

Press-Gazette Media reported that Shopko attorney Stephen Hackney says a restraining order would require the retailer to close its pharmacies and would harm patients who need the medications.

Brown County Circuit Judge William Atkinson rejected McKesson’s request in Green Bay.

Neither Shopko, nor its parent company, Sun Capital Partners, returned calls for comment.

Shopko says it has more than 300 retail locations, with 18,000 employees.

It announced late last year it would be closing nearly 40 stores and also closed pharmacy locations, including one in Bend.