ShopKo Merging With Pamida

1/5/12 – Two department store chains say they’ll merge. ShopKo of Green Bay and Pamida of Omaha are both owned by Sun Capital Partners of Florida. ShopKo C-E-O Paul Jones said the merger will be good for both companies and their customers, because their strengths and their networks of stores complement each other. The combined operation will carry the ShopKo name with 350 stores in 22 states. ShopKo’s headquarters will stay in the Green Bay suburb of Ashwaubenon. Governor Scott Walker issued a statement that the merger would create over 120 new jobs at the corporate headquarters’ facility – and the firm will get up to two-million-dollars in state tax credits. The move is expected to be finalized in mid-February. ShopKo says it will spend 80-million dollars over the next year to convert Pamida stores into ShopKo Hometown stores – and the firm plans to open more Hometown stores in the second half of the New Year and in 2013. ShopKo acquired Pamida in 1999, and both have operated as separate brands until now. ShopKo has 149 stores in 13 states, with revenues of two-billion dollars a year. Pamida has 193 stores in 17 states with revenues of a billion-dollars a year.