Rayís Food Place shoppers Salvador Sabino and Noelia De La Cruz learned about the Phoenix storeís impending closure while shopping Tuesday. C&K Market Inc. announced it would close or sell 16 of the companyís grocery stores in Oregon and California after filing for Chapter 11 bankruptcy. The Rayís Food Place in Phoenix is one of 16 stores on the companyís list to be closed or sold. - Bob Pennell / Mail Tribune photo

C&K Market reports $100 million-plus debt in Chapter 11 filing

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.

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