(Photo By Flickr User thalling55)
Shopko, which, operates stores in Quincy, Jacksonville, and Monmouth, IL, announced earlier this week that it, along with its subsidiaries, have filed voluntary petitions for a court-supervised financial restructuring under Chapter 11 of the United States Bankruptcy Code.
The release states that during the restructuring process, Shopko will continue to operate and serve its customers, vendors, partners, and employees.
According to WGEM-TV, the company stated 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. This incremental liquidity will ensure that suppliers and other business partners and vendors will be paid in a timely manner for authorized goods and services provided during the Chapter 11 process, in accordance with customary terms.
Russ Steinhorst, Chief Executive Officer Of Shopko said,
“This decision is a difficult, but necessary one. 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 also 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.
Founded in 1962 and headquartered in Green Bay, WI, Shopko Stores Operating Co., LLC is a $3 billion retailer that operates more than 360 stores in 26 states throughout the Central, Western, and Pacific Northwest regions.
Additional information is available on the Company’s restructuring website at http://info.shopko.com.
