Shopko files for Chapter 11 bankruptcy, announces more closures
Wisconsin-based retail chain Shopko, which filed for Chapter 11 bankruptcy Wednesday, does not have plans to close several stores in the Stateline.
Shopko operates stores in Beloit, Belvidere, Dixon and Freeport. None of these locations were part of Shopko's list of closing stores.
According to the list, Shopko plans to close around 100 stores by April 2019. The company plans to close 16 stores is Wisconsin, including locations in Green Bay, Madison and Manitowoc.
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(WIFR) -- Wisconsin-based retail chain Shopko, which operates stores in Beloit, Belvidere, Freeport and Dixon, officially files for bankruptcy Wednesday.
The company announced Wednesday its need for financial restructuring due to excessive debt and competition.
Shopko is closing an extra 38 locations and relocating 20 optical centers to freestanding locations.
"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," said Shopko CEO Russ Steinhorst.
Information is not yet available whether store locations in Freeport, Belvidere or Beloit are affected by the closures.
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(AP) -- McKesson Corp., pharmaceutical drug supplier to Shopko, says it supplied Shopko with $67 million in drugs since Nov. 11 but had not been paid since early December.
McKesson asked a judge for a restraining order this week to keep Shopko from selling the medications it has supplied. McKesson attorney Jeff Garfinkle said during a court hearing that Shopko is expected to file for bankruptcy protection Jan. 15.
Press-Gazette Media says Shopko attorney Stephen Hackney says a restraining order would require the retailer to close its pharmacies and would harm patients who need the medications.
Above is from: https://www.wifr.com/content/news/Shopko-expected-to-file-for-bankruptcy-next-week-504107021.html
Email to customers:
January 16, 2019
To: Shopko Customers
Re: Important Information Regarding Shopko’s Restructuring
Since 1962, Shopko has provided quality name-brand merchandise, great values and services to small and mid-size cities and have consistently met the needs of smaller communities across the Central, Western and Pacific Northwest regions of the U.S.
Over the past several months, we have been taking action to drive improved performance and strengthen Shopko’s financial position. Today, Shopko took an important step towards protecting our future and ensuring our ability to continue delivering the high-quality products and services that our customers are accustomed to receiving.
WHAT THIS MEANS FOR YOU: WE ARE OPEN FOR BUSINESS
- Our continuing stores are open. We continue to offer the high-quality products that you are accustomed to.
- Our customer programs will be offered as normal at our continuing stores. Except for those stores that we are closing, we are continuing to honor return policies, warranties, gift cards and merchandise credits, as well as our loyalty programs.
- You can continue to count on our high-quality products and services.
Today's announcement provides clarity about the path forward for us, and we are confident the outcome will be a stronger Shopko for you, our valued customers, through the process.
If you have questions about this process, you can find FAQ’s and additional information on a special page on our website at http://info.shopko.com.
We will be sure to communicate with you throughout our reorganization and give regular updates as important decisions and major developments take place.
Sincerely,
Russ Steinhorst, SHOPKO CEO
