General merchandise retail chains Pamida (Omaha, Neb.) and Shopko, a division of Shopko Stores Operating Co. (Green Bay, Wis.), will merge to create a larger retail chain operating under the Shopko banner.
The new entity, which will be based at Shopko's current headquarters in Green Bay, will operate approximately 350 locations in 22 states. Financial details of the merger, which is expected to close in mid-February, were not disclosed, reports The Business Journal.
The deal reunites the Shopko and Pamida chains under a single management, according to the Journal. ShopKo Stores Inc. had previously operated Shopko and Pamida in the area, with Pamida stores primarily located in rural markets. In 2005, ShopKo was acquired by Boca Raton, Fla.-based private equity firm Sun Capital Partners, went private and split from the Pamida chain, which like Shopko is still owned by an affiliate of Sun Capital Partners.
Shopko Stores president, chairman and ceo W. Paul Jones will lead the combined company and Pamida president and ceo John Harlow will serve on the leadership team and help direct the integration process.