Shopko has filed for bankruptcy and will close 38 stores as part of its restructuring efforts. The Ashwaubenon-based retailer announced Wednesday that it has obtained $480 million in financing from lenders led by Wells Fargo to fund and protect its operations while it goes through bankruptcy.
Shopko has also asked the federal bankruptcy court in Nebraska to allow it to continue to pay wages, salaries, and benefits, and pay vendors and suppliers during the bankruptcy process.
“This decision is difficult, but a necessary one,” CEO Russ Steinhorst said in a news release.
“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.”
Court documents list the company’s assets at between $500 million and $1 billion, with liabilities estimated between $1 billion and $10 billion.
A list of the 38 closing stores, plus previously announced closures are posted on a separate website dedicated to the bankruptcy.
Included in the list are seven stores from Northeast Wisconsin, and over a dozen stores statewide, which all are set to shut their doors in April.
- 216 S. Military Ave., Green Bay
- 3415 Calumet Ave., Manitowoc
- 1578 Appleton Rd., Menasha
- 699 S. Green Bay Rd., Neenah
- Shopko Express – W3208 Van Roy Rd., Buchanan
- Shopko Express – 2101 E. Evergreen Dr., Appleton
- Shopko Hometown – 1010 S. Mainline Dr., Seymour
- 1200 Main Street, Stevens Point
- 1800 Plover Road, Plover
Additional stores in Madison, West Bend, and La Crosse will also be closed.
Shopko also plans to move more than 20 optical centers to freestanding locations.
The company says it is encouraged by four freestanding optical centers it opened last year and will look to grow its optical business. All optical centers will remain open through the transition, the company says.
Finally, Shopko says it is auctioning its remaining pharmacy business.
The bankruptcy is the latest in a string of announcements from Shopko.
Last month, it announced plans to close 39 stores, mostly Shopko Hometown stores, and sell the pharmacy business at more than 40 locations. Last week, the company confirmed plans to close the Shopko Hometown in Seymour and the full-size department store in Menasha.