Shopko stores in Hutchinson, Glencoe and Cokato are not among those closing following an announcement that Shopko filed Wednesday for Chapter 11 bankruptcy protection, which could shield the chain from creditors.
However, Shopko has indicated it will auction the pharmacies in its remaining stores. Michelle Hansen, a public relations contact for Shopko, confirmed that is the plan for all stores. She said the process will begin next week.
"The pharmacy businesses will remain open throughout this process," she said. "The hope is we will be able to transfer all those pharmacy files to other pharmacies."
"The company is seeking to facilitate the restructuring as a result of excess debt and ongoing competitive pressures," reads a press release published Wednesday.
According to the same press release, Shopko stores that will remain open will continue to offer programs. The return policy, warranties, gift cards and merchandise credits and loyalty programs will be honored at those stores.
The announcement comes on the heels of previous bad news for Shopko. It had previously announced plans to close several stores, and the most recent 38 additions to the list following the bankruptcy announcement bring it to 105 stores total. Additionally, 20 optical centers will move to freestanding locations, and the business will focus on opening more in the future due to their recent success, according to a press release from Shopko. The company obtained up to $480 million in financing from lenders led by Wells Fargo.
"Over the past several months, we have been taking action to drive improved performance and strengthen Shopko's financial position," CEO Russ Steinhorst said in a press release. "(The announcement) provides clarity about the path forward for us, and we are confident the outcome will be a stronger (Shopko)."
Shopko's previous troubles include a restraining order from McKesson Corp., a pharmaceutical supplier that claimed Shopko hadn't recently paid for drugs it provided.
Shopko stores in Rochester, Fairmont, Mahnomen, Warroad and Paynesville will close in March and April. Other closures are spread across several states.
