Skopko locations in Northern Utah closing after bankruptcy filing

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They have previously announced the closing of several smaller stores in smaller South Dakota communities.

In a release announcing the filing, Shopko said the restructuring is necessary because of "excess debt and ongoing competitive pressures".

The Pipestone Shopko Hometown is not on the list of stores slated for closure.

The company says, "Today's announcement provides clarity about the path forward for us, and we are confident the outcome will be a stronger Shopko".

Shopko leaders now hope to sell off the assets from its remaining 134 pharmacies - including those in Powell - by the end of next week. The petitions have been filed in the U.S. Bankruptcy Court for the District of Nebraska.During the restructuring process, Shopko will continue to operate and serve its customers, vendors, partners and employees. In addition to the 38 stores to be closed, Shopko will also be relocating 20 Shopko Optical Centers to freestanding locations.

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Shopko says it has obtained up to $480M debtor-in-possession financing from certain of its prepetition secured lenders, led by Wells Fargo, N.A.as administrative agent, to help fund and protect its operations during the Chapter 11 process. Last month, it announced plans to close about 40 of its more than 300 stores across the country.

In the release, Shopko CEO Russ Steinhorst said, "This decision is a hard, but necessary one". Last week, a pharmaceutical drug supplier for Shopko, claiming the chain had failed to pay for products, said it was expected to file Chapter 11.

In a bankruptcy court filing, the Shopko CEO said that, like many other retail companies, the business has fallen victim to consumers shifting to online sellers. A press release said that the company plans on closing 38 more stores.

In Minnesota, the Shopko stores in Rochester and Fairmont along with three Shopko Hometown stores in Mahnomen, Warroad and Paynseville are closing.

Shopko opened its first store in Green Bay in 1962. Shopko has more than 360 stores in 24 states with 18,000 employees.

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