ASHWAUBENON, Wis. (WLUC) - Shopko has filed for a Chapter 11 financial restructuring, the store announced Wednesday morning.
The store filed voluntary petitions for a court-supervised financial restructuring under Chapter 11 of the United States Bankruptcy Code.
Shopko has announced that it will be closing an additional 38 stores, relocating over 20 Optical centers to freestanding locations, and conducting an auction process for its pharmacy business.
The list of the 38 store closures includes the Shopko Hometown store in Wetmore. Shopko announced last week that store will close April 7. No other U.P. stores were on the list. There are six other Shopko Hometown stores in Upper Michigan and three main Shopko stores.
"This decision is a difficult, but necessary one," said Russ Steinhorst, Chief Executive Officer, in a statement. "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."
Shopko says it has obtained up to $480M debtor-in-possession financing from certain of its prepetition secured lenders, led by Wells Fargo, N.A. as administrative agent, to help fund and protect its operations during the Chapter 11 process.