C&K Market Inc., parent company of Ray's Food Place stores, reported in a bankruptcy court filing that its debt exceeded $100 million.
The Brookings-based company filed Tuesday for Chapter 11 court protection and announced it would close or sell about a 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 it through its reorganization efforts.
The company filed in U.S. Bankruptcy Court for the District of Oregon in Eugene.
C&K's largest creditors are THL Credit of Los Angeles and Endeavour Structured Equity & Mezzanine Fund I of Los Angeles, which are owed more than $14.9 million. The top vendor creditor is Supervalu of Hopkins, Mo., which is owed $5.3 million. C&K owes Western Boxed Meat of Portland $2.3 million and United Salad Co. of Portland $876,000, while former Tarks Market owner Ron Ridgway is owed $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.