A pharmaceutical drug supplier to Shopko says the Wisconsin-based retail chain is expected to file for bankruptcy next week.
Shopko has stores in Janesville and Beloit.
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 Tuesday, Jan. 15.
Press-Gazette Media reported Shopko attorney Stephen Hackney said a restraining order would require the retailer to close its pharmacies and would harm patients who need the medications.
Brown County Judge William Atkinson rejected McKesson’s request for a restraining order. Neither Shopko nor its parent company, Sun Capital Partners, returned calls for comment.
Managers at both the Janesville and Beloit Shopko locations said they weren’t authorized to comment on Shopko corporate matters. Both deferred comment to a corporate representative in Shopko’s Green Bay headquarters.
Shopko announced in December it planned to close 39 stores in 14 states. The only store closure in Wisconsin would be in Mauston, the Associated Press reported.
Last week, Shopko shuttered its pharmacy in the Janesville store. According to Gazette reports, it was one of five pharmacies Shopko intended to close.
A CVS Pharmacy spokesperson told The Gazette last week that all of the Janesville Shopko pharmacy customer files had been transferred to CVS Pharmacy in Janesville, and that as of Friday former Shopko pharmacy customers could use any of Janesville’s three CVS pharmacy locations.
A spokesperson at Shopko headquarters on Wednesday did not immediately respond to an inquiry from The Gazette on whether Shopko is planning to file for bankruptcy.
An attorney for McKesson Corp. did not immediately respond to an inquiry by a Gazette reporter seeking details on how McKesson became aware Shopko was planning a bankruptcy filing.