Shopko Files for Bankruptcy, to Close an Additional 38 Stores

Shopko has filed for bankruptcy and has announced that
they will close an additional 38 stores as part of its restructuring plan. The
retailer announced today (Wednesday), that they have received 480-million
dollars in financing from lenders led by Wells Fargo to help protect its
operations during the bankruptcy process. Shopko has asked the bankruptcy court
in Nebraska to allow it to continue to pay wages, salaries and benefits and pay
vendors and suppliers during the bankruptcy process. In addition to the store
closures, the company will be relocating over 20 optical centers to
freestanding locations and will be auctioning off its remaining pharmacy
business.

“This decision is a difficult, but necessary one,” Shopko
CEO Russ Steinhorst said, “In a challenging retail environment, we have had to
make some very tough choices, but we are confident that by operating a smaller
and more focused store footprint, we will be able to build a stronger Shopko
that will better serve our customers, vendors, employees and other stakeholders
through this process.”

The company posted a list on their website of the stores
that will be closing as part of the restructuring, including Neenah, Menasha, Appleton, Green Bay,
West Bend and Manitowoc along with two locations in Madison. While most locations will close by April, Fond du Lac and West Bend locations still have not received word on their long-term status. See the full list here.