C&K/Ray’s Markets file for Chapter 11 Bankruptcy – Closing/Selling 16 stores, leaving 44 Open including both stores in South County
C&K Markets and Ray’s Markets have been battling a shrinking customer base in a lot of communities that have quick and easy access to larger grocery stores nearby. Not long ago, the Oregon – California chain dropped their drive-up pharmacy service as a cost-saving measure. However, the chains problems appeared deeper and this week the chain announced they’ve filed Chapter 11 bankruptcy and selling or closing 16 stores in both states. However, the stores in Waldport and Yachats are not affected. They will remain open. C&K and Ray’s do not have any other stores in Lincoln County.
Here is a message from the chain as it appears on the company website:
Thank you for shopping with us. We want to keep you informed about our difficult decision to enter Chapter 11. 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 maintain about two-thirds of our 60 stores, tighten our corporate structure, and restructure our debt.
Traditionally, we’ve focused on serving people in small, rural towns throughout Oregon and northern California. As competition increased from larger grocers and mega-stores, more people left their communities to shop in those stores. Sales declined in some of our stores, forcing us to realize that we could no longer operate profitably in some markets.
Selling or closing about a third of our stores was a difficult, but necessary move to ensure our viability and will allow us to continue serving as many customers as possible. We are saddened that some will no longer work with us and we will assist them in their job search.
We appreciate the hard work and dedication of all of our employees. Please join us in extending appreciation to the employees in your store. They enjoy serving you and will continue to work hard for you.
We also value each and every one of you. You rely on us for friendly customer service, a wide selection of groceries and the convenience of shopping close to your home. That’s what we’ll continue to offer.
We’re committed to strengthening our company and plan to emerge from Chapter 11 protection by the end of 2014. In the meantime, we’ll do our best to keep everything business as usual. We ask you to continue shopping our stores. Your ongoing support means a lot to us.