Ray's Food Place stores to close in North Albany, Philomath

2013-11-19T17:00:00Z 2014-01-03T23:04:37Z Ray's Food Place stores to close in North Albany, PhilomathBy Steve Lathrop, Albany Democrat-Herald Albany Democrat Herald

Ray’s Food Place stores in North Albany and Philomath will close as a result of a Chapter 11 bankruptcy filing by parent company C&K Market, Inc. of Brookings.

The Albany Ray’s, 621 N.W. Hickory St., and the Philomath store, 1740 Main St., are among 16 stores in Oregon and Northern California scheduled to be sold or closed.

According to company official Grant Lunde, C&K will  attempt to sell the Albany store, but plans to close the store by the end of this year. The company filed in U.S. Bankruptcy Court for the District of Oregon in Eugene.

Citing legacy costs, an opportunity to sell or close underperforming stores and resolve debt issues, the Brookings-based company filed the voluntary petition today.

All other C&K operations are expected to continue as normal throughout the bankruptcy process.

The company’s board chair, Doug Nidiffer, said in a statement that the approach was in the best interest of the communities it serves.

At the initial hearing in a few days, a number of first- day motions will be filed, including one that will seek approval of a debtor in possession financing facility with U.S. Bank. C&K will continue to operate in the ordinary course of business during the bankruptcy, as it reorganizes.

The closure will also affect OSU Federal Credit Union, which operates a branch within Ray’s. OSU Federal spokesman Mike Corwin said that the company is moving to provide a viable short-term solution for its customers.

“We plan to keep providiing uninterrupted service to our members,” Corwin said. “We are speaking with North Albany Village management to see if other possible sites within the village are available.”

OSU Federal holds a lease with Ray’s through 2016. Corwin said that the credit union has purchased a parcel of land in North Albany Village, with plans to erect a brick and mortor building.

“Obviously we will step up those design and building plans considering the news about Ray’s,” Corwin said.

C&K anticipates that about 20 percent of its workforce will be eliminated as a result of closing stores and restructuring on the corporate side.

“The positive news is that we will put our energies into the remaining stores and intend to emerge from bankruptcy as a stronger, leaner company,” said Gregory L. Sandeno, company president.

On its website, C&K posted that the closures are a result of increased competition from larger grocers and mega-stores and more people shopping in those stores, causing a decline in sales.

The company also said it would assist it’s employees at the affected stores in finding other jobs.

The Albany Ray’s, which opened in 2006, employs 42 people. The Philomath store opened in 2012.

Along with Ray’s stores, C&K Market operates Shop Mart, C&K Markets, and LoBuck$. More information can be found at www.ckmarket.com.

Steve Lathrop is the business reporter for the Albany Democrat-Herald. He can be reached at 541-812-6076 or by email at steve.lathrop@lee.net.

Copyright 2015 Albany Democrat Herald. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

(17) Comments

  1. beachbirdie
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    beachbirdie - December 02, 2013 12:58 am
    Very sad to see Ray's go. If you watched your sales you could do well there, just as at Safeway or Fred's or others.

    I don't care much for Trader Joe's but a Market of Choice would be nice to have just for the great produce.

    For the person who thinks North Albany residents are avoiding Mega Foods because they are snobs, not true. It is just way out of the way. I hate that ALL the grocery shopping is located in one dense, high traffic center near the mall, and I avoid going there like the plague.
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    DELIUS - November 29, 2013 9:21 am
    Really sad news that RAY is going away. The days of the smaller store and chains are over.
    It's either big or nothing. Want a great deal during the sale.....go see my mna Lloyd.
  3. Nick
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    Nick - November 23, 2013 5:31 pm
    Just learn how to shop for crying out loud....this is a great store with excellent service.
  4. Nick
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    Nick - November 23, 2013 5:30 pm
    Just learn how to shop...it's called private label....their prices were not all that expensive....their service was great.
  5. Nick
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    Nick - November 23, 2013 5:29 pm
    Oh come on...learn how to shop.
  6. Nick
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    Nick - November 23, 2013 5:29 pm
    Total BS....it's not funny....take your political junk and hide your head in the sand...where it belongs.
  7. db
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    db - November 22, 2013 10:13 pm
    Very sad to see Ray's stores closing. The North Albany store had the best meats around. Unbelievably large steaks. Yes, they didn't have the best prices on many things, but they were worth supporting just to have an alternative in the area. We've been to the Walmart grocery market and it isn't very good, price wise or quality. Lastly of all the chain stores Ray's has the BEST fried chicken. I hope the Waldport store survives this restructuring.
  8. oregon walker
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    oregon walker - November 22, 2013 8:02 pm
    Personally, I am very sad to see that Ray's is going. We used it regularly. When we first moved to North Albany, there was no grocery shopping available. It was a huge pain to drive at least 15 minutes one way to buy a few last-minute groceries. We were happy when Ray's arrived, and made a point to buy more there than we might have otherwise just to support its convenience. Yes, it is expensive -- but not, in most cases, more than Safeway / Fred Meyer / Albertson's. I shopped sales and did not spend more than I would have elsewhere. Occasional larger trips were made to Costco or Winco. The salespeople are very friendly and helpful. My eight-year-old is especially sad it is closing (maybe she wonders where we will get our food - ha). Hope another grocer will brave the location (and soon).
  9. santiamlogger
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    santiamlogger - November 21, 2013 6:35 pm
    I don't agree customers were goughed because they were 'North Albany'. Possibly customers in that North Albany business were only too glad to pay high prices. Customers in South Albany
    prefer Mega Foods. Possibly many in North Albany are above Mega Foods. Price the Gas in North Albany with the AMPM's on Pacific and others. Roth's closed in Albany. They did not compete. Orville himself once told me customers adore the pretty girls and handsome boys that carry out groceries to your car. I added they cost him less than 1%. He then said and I will get 12 to 15% more because of that 1%. Ray's will stay in places like La Pine where there is no competition. The Pay Less (now Rite Aid) store in Lebanon sold more auto supplies than any other in the State. No competition in Lebanon or Sweet Home. Then Walmart came in with good but not low prices. West Albany wanted a nice larger grocery store but refused Walmart
    so they now have nothing and Walmart came toAlbany anyway. I seldom go there as they are not inexpensive. Like Costco they simply seem that way to consumers that are unable or incapable of totaling size versus true cost. Make it twice as large and consumers will pay 250%. The company that owns the land should reduce rent to all of the other renters in that shopping center. They will be hurting with Ray's closed. Maybe they can all move to old downtown Albany and get assistance from CARA. Then parking will be more difficult so more old buildings can be torn down to make more gorgeous parking lots for historic downtown Albany with quaint streetlights and ultr moder 'bulbouts'.
  10. GidBiddler
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    GidBiddler - November 21, 2013 10:36 am
    I can't believe that CARA isn't going to swoop in and throw a bunch of our tax dollars at the store to keep it open! (sarcasm, I hope you understand). This store was far too expensive to be profitable. It was consistently vacant of shoppers, which should have been their hint...
  11. caraway
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    caraway - November 20, 2013 8:08 am
    Sort of sorry to see them go, as they are handy in a pinch, but have to agree with...they are seriously expensive!!!!! IF that isn't bad enough I have encountered several times the sales price wasn't in the register, or the sales price sign was placed in the wrong spot. So at a glance I was thinking the item was On Sale, but at the check stand, IF I was paying attention, I'd find it wasn't, or not until I'd get home and study the receipt... So, I too would usually drive right by them to go to the almost as expensive Safeways...unless time was a critical factor. I sure hope Philomath gets a GOOD grocery store next time!! ,
  12. Joe_Staff
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    Joe_Staff - November 19, 2013 11:35 pm
    Nice and convenient place to stop when traveling in and out of town. My best wishes go out to all the employees. Being told the place you work for is closing, especially before the holidays, can hurt at some level.
  13. bubbabear64
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    bubbabear64 - November 19, 2013 6:52 pm
    The grocery business is getting ugly. There are going to be fewer players in the next few years. Safeway is fighting a takeover right now that is causing them to sell stores and divisions to prevent it from happening. I liked Ray's and I hope the property isn't vacant for too long.
  14. 123
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    123 - November 19, 2013 5:54 pm
    Too bad - great store and really liked shopping there. Hope we get a good substitution!
  15. insidescoop
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    insidescoop - November 19, 2013 4:53 pm
    There's no question the North Albany community has a need for a good full service grocery store in this location. I'm confident that another grocer such as Safeway or Albertsons will step up and support this part of our town. I would love to see Market of Choice or Trader Joes come to Albany but not so sure either of those would eliminate the sense of feeling "gouged" at the check out line.
  16. monasoot
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    monasoot - November 19, 2013 3:52 pm
    While I love the convenience of Ray's, it is so overpriced, that we would only shop there in a pinch. Their prices were consistently two to three times as high on their bulk goods, as anywhere else in town. Their canned goods were exorbitant. Their meats were not the best quality, and the same goes for their produce. One would think that if they were going to charge the prices that they did, at least we'd get something out of the ordinary and special. That being said, they were always incredibly generous with donations to the middle school. Their community outreach will be missed.
  17. cjbi7
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    cjbi7 - November 19, 2013 3:29 pm
    Hopefully a decent grocery store chain will move in to replace Rays. That store was so over priced and their selections so limited that, although we live just around the corner, we drove past it every week to shop at Safeway or Freddies. Every few months we'd feel bad for not supporting a North Albany business and shop there, only to leave convinced a drive was worth the effort. I felt like they were happy to gouge us just because we were "North Albany."
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