Mega Co-op Closes 13 Stores in Chapter 11 Bankruptcy Move
EAU CLAIRE, Wis. — Mega Co-op will close 13 stores as part of Chapter 11 bankruptcy proceedings, cutting the Wisconsin-based retailer's store count to 18 locations.
Despite the store closures Mega Co-op does not plan to lay off any employees, according to a News 18 WQOW report.
The cooperative announced the store closures on Sept. 1 and called them an "important step toward preserving its future success."
Mega Co-op currently has 31 locations in Wisconsin's Chippewa Valley area. Cooperative officials did not state which stores will close or when they will cease operations.
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In accordance with the bankruptcy filing, Mega Co-op filed customary motions to continue operations, including paying all employees and continuing benefit programs, according to the report.
All employees who work at a store marked for closure will be offered a position at a remaining Mega Co-op location.
Mega Co-op grew to 38 locations with the 2016 acquisition of five Travel Stop locations in Stanley, Abbotsford, Elk Mound, Durand and New Lisbon, Wis., before shrinking to 31. The deal marked operator The Consumers Cooperative Associative of Eau Claire's shift to focusing solely on the c-store channel and investing significant resources in remodeling, rebranding and stabilizing its business model, according to CEO Mike Buck.
The same year, the cooperative finalized an agreement through which Mega Co-op grocery stores would become Gordy's Markets and the Gordy's Express convenience stores and gas stations would become Mega Holidays, allowing each company to focus on their primary business, as Convenience Store News reported.
"The Co-op believes that the remaining 18 locations will continue to serve our community and cooperative members," stated Buck in a press release. "Our members can expect to continue receiving the many benefits that the co-op offers and as we look forward, can expect that the co-op will continue to identify ways to enhance the cooperative member benefits."
The Consumers Cooperative Association of Eau Claire was founded in 1935 and has more than 200 employees.