Shopko files for bankruptcy; will close West Bend and other stores

Freeman Staff

Jan. 17, 2019

Customers are seen leaving Shopko on June 21 in West Bend. Shopko announced
it will be closing its store there.

File photo

WEST BEND — Shopko announced Wednesday it and its subsidiaries filed for a court-supervised financial restructuring under Chapter 11 of the United States Bankruptcy Code.

It will close another 38 stores, including its West Bend location, relocating more than 20 optical centers and auctioning its pharmacy.

The West Bend store is expected to close April 15.

A statement from the company said it is confident this step will allow for a stronger Shopko.

“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 has obtained approximately $480 million in debtor-in-possession financing from some lenders, led by Wells Fargo, N.A. as administrative agent during the Chapter 11 process.

This is to make sure certain suppliers and vendors will get paid. The company will continue to update customers throughout this process.

While it undergoes the restructuring process the remaining locations will continue to operate and serve its customers, vendors, partners and employees.

In all, 16 stores in Wisconsin will close, including Green Bay, Manitowoc, La Crosse, Madison, Menasha, Stevens Point, Grafton, Neenah, Plover, Sussex, Buchanan, Appleton, Mauston and Seymour.

<<EARLIER: Grafton Shopko one of six to close