Shopko Creditors Looking to Force Owners to Return $117 Million in Dividends

Creditors for Shopko are trying to make the owner of the former giant of the retail industry return $117 million in dividends. A committee which represents some of the largest landlords and suppliers filed a motion in bankruptcy court last Tuesday, which claim that $67 million in special dividends and fees constituted a “fraudulent conveyance” while another $50 million in dividends were “illegal.” The claim goes on to say that the Ashwaubenon based company’s directors and managers failed to fulfill their obligations to investors, vendors, landlords and the company’s employees. The request will be addressed in a hearing which is scheduled for April 2^nd.