IN THE UNITED STATES BANKRUPTCY COURT

FOR THE DISTRICT OF NEBRASKA

CHAPTER 11

Case No, 19-80064-TLS

This is to inform you about a proposed “Settlement” between Specialty Retail Shops Holding Corp. and its affiliated debtor entities (referred to in as “Shopko” or the “Debtors”), on the one hand, and former employees who may be entitled to severance pay, on the other. A group of former employees (“Class Representatives”) has asserted claims against Shopko, alleging that Shopko failed to make certain severance payments. The Class Representatives are pursuing such claims on behalf of all similarly situated former employees. Shopko denies that it owes any severance pay. Nevertheless, Shopko has reached an agreement with the Class Representatives to settle the asserted claims for the entire class of similarly situated former employees.

To obtain court approval of the settlement, the parties have filed a Joint Motion to Approve Class Settlement (the “Joint Motion”) with the U.S. Bankruptcy Court for the District of Nebraska (the “Court”). If the Court should approve the Joint Motion, you may be eligible to receive a pro rata share of the settlement amount, less certain attorneys’ fees, service payments and payroll taxes.