Less than a month after filing for Chapter 11 bankruptcy protection, Shopko is expanding the number of stores it plans to close.
In a statement provided to HomeWorldBusiness.com by Shopko spokesperson Michelle Hansen, the retailer now plans on closing 250 stores after announcing a new round of closures that impact 212 locations. The company initially said it would be closing 38 locations. The result will be a regional retailer with a footprint of 120 stores.
“Through our conversations with the potential buyers, it has become clear that it is in our best interest to operate with a significantly smaller store footprint,” the company said in a statement. “We remain hopeful that we will be able to emerge as a stronger company, and we believe that this is the best course of action to make ourselves more attractive to potential buyers and successfully emerge from Chapter 11.”
In mid-January, Shopko filed for Chapter 11 in U.S. Bankruptcy Court for the District of Nebraska. The company said it needed to restructure because of its excessive debt and ongoing competitive pressures. Shopko obtained up to $480 million debtor-in-possession financing from pre-petition secured lenders led by Wells Fargo.