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.