Court approves Shopko to continue operations during bankruptcy

Freeman Staff

Jan. 18, 2019

GREEN BAY — Just a day after filing for bankruptcy under Chapter 11 protection, Shopko was informed it could continue its operations.

“We truly appreciate and are encouraged by the outpouring of support that we have received over the last 24 hours from our customers, communities, landlords, vendors, and government officials,” said Russ Steinhorst, chief executive officer, in a statement. “I also want to thank all of our teammates for their ongoing hard work and commitment.”

As part of the court’s approval of first day motions, Shopko received authorization to provide employee wages, health care coverages and other benefits, including retirement benefits, without interruption, and pay vendors and suppliers for authorized goods and services provided on or after the filing date. Additionally, customer programs, including gift cards and loyalty program, will be honored and continued in the ordinary course.

Shopko recently announced it will be closing its Sussex, West Bend and Grafton locations.

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