Green Bay, Wisconsin-based Shopko today announced that it has filed for financial restructuring under Chapter 11 of the United States Bankruptcy Code.

The Company is seeking to facilitate the restructuring as a result of excess debt and ongoing competitive pressures. During the restructuring process, Shopko will continue to operate and serve its customers, vendors, partners and employees.

Shopko has obtained up to $480 million in financing to help fund and protect its operations during the Chapter 11 process.

“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,” said Shopko Chief Executive Officer Russ Steinhorst.

Shopko will be closing an additional 38 stores (including Minnesota stores in Paynesville and Mahnomen), relocating over 20 Optical centers to freestanding locations, and conducting an auction process for its pharmacy business. In Morris, the Shopko Hometown has already sold its pharmacy business to Thrifty White Drug.

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