GREEN BAY, Wis. -- Shopko announced Wednesday morning that they will be closing 38 stores after filing for Chapter 11 bankruptcy.
The company said they're looking to restructure as a result of excess debt and ongoing competitive pressures, and they plan to hold an auction process for its pharmacy business.
The following Nebraska stores will close:
The company reported the petitions have been filed in the U.S. Bankruptcy Court for the District of Nebraska. During the restructuring process, Shopko will continue to operate and serve its customers, vendors, partners and employees, and they're currently seeking approval to continue paying each entity.
“This decision is a difficult, but necessary one,” said Russ Steinhorst, Chief Executive Officer. “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.”
In order to position the Company for future success, Shopko has announced that it will be closing an additional 38 stores, relocating over 20 Optical centers to freestanding locations. Throughout this process, all Shopko Optical centers and pharmacies remain open and continue to deliver the high-quality products and services to which its customers are accustomed. All other stores remain open as the Company continues to optimize its store footprint.
Additionally, encouraged by the performance of the four freestanding Optical centers that were opened in 2018, Shopko plans to continue to grow its optical business by opening additional freestanding Optical locations during 2019.