C&K Market Inc., parent company of Ray's Food Place stores, reported its debt exceeded $100 million in a bankruptcy court filing.
The Brookings-based company Tuesday filed for Chapter 11 court protection and announced it would close or sell about one third of its 60 stores in Oregon and California, while cutting 20 percent of its 2,500-person workforce.
C&K Market, represented by Portland law firm Tonkon Torp, said its liabilities were between $100 million and $500 million, while its assets ranged between $10 million and $50 million. The company is paying Tonkon Torp nearly $360,000 to navigate the company through its reorganization efforts.
The company filed in the U.S. Bankruptcy Court for the District of Oregon in Eugene.
A preliminary hearing is scheduled for today at the U.S. Courthouse in Medford.
C&K's largest creditors are THL Credit of Los Angeles and Endeavour Structured Equity & Mezzanine Fund I of Los Angeles, owing both more than $14.9 million. The top vendor creditor is Supervalu of Hopkins, Mo., owed $5.3 million. C&K owes Western Boxed Meat of Portland $2.3 million, United Salad Co. of Portland $876,000 and owes former Tarks Market owner Ron Ridgway $593,000.
Among other major creditors are: Bigfoot Beverages of Eugene ($414,000), Umpqua Dairy Products ($390,000), VPD IV of Sacramento ($387,000) and J B Hunt of Lowell, Ark., ($362,000).
The company is seeking a $7 million debtor in possession loan from U.S. Bank.
— Greg Stiles