Shop Smart in Yreka will be closed or sold after parent company C&K Market files for Chapter 11 bankruptcy
Ray’s Food Place stores in Mount Shasta and Weed will not be affected by their parent company’s recent filing for Chapter 11 bankruptcy.
Shop Smart in Yreka will either be closed or sold, said C&K Market spokesperson Grant Lunde, along with 15 other “underperforming” stores in northern California and Oregon.
Chapter 11 will allow the Brookings, Ore. based company to restructure its business while “continuing normal business operations,” according to a press release issued Tuesday. Competition with stores like Walmart and Costco in recent years has “resulted in pressure on the company’s sales and margins” and the need to reorganize business, the release states.
“Entering Chapter 11 was a difficult decision for our family,” said Doug Nidiffer, chairman of the C&K Market board in the 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.”
Approximately 500 jobs, or 20 percent of C&K’s current workforce of 2,500 employees, will lose their jobs as part of the proceedings. The company said it plans to work with WorkSource in Oregon and California’s workforce services offices to help affected employees find new jobs.
The news comes weeks after it was announced that Pharmacy Express inside the Mount Shasta Ray’s store was closing, with customer prescriptions transferred to Rite Aid.
There will be no changes to Rays’ All Access Rewards program or the company’s Community Rewards program, which donates 1% of qualifying purchases back to community organizations designated by its customers, according to the company.
“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,” said Gregory Sandeno, president of C&K Market.