Midwest department-store chain Shopko filed for Chapter 11 bankruptcy protection and said it would close roughly 100 of its 363 stores as part of the reorganization.
The troubled retailer, already in the midst of closing roughly 60 stores, added 38 more closures with this bankruptcy announcement, according to CBS. Shopko could not immediately say how many of its 18,000 employees would be affected.
Shopko says it plans to relocate about 20 optical centers to freestanding locations and that it is holding an auction process for its pharmacy business, according to a news release. The company has secured roughly $480 million in financing from a group of lenders led by Wells Fargo that will allow the company to keep operating.
"This decision is a difficult but necessary one," said Shopko CEO Russ Steinhorst in a press 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."
The Green Bay, Wis.–based company, which is owned by private equity firm Sun Capital Partners, operates in 24 states.
By Brannon Boswell