Shopko files for bankruptcy, announces 38 store closures

The Kennewick Shopko and

Prosser Shopko Hometown stores aren’t included on a list of 38 stores

scheduled for closure nationwide, though four others in the state are on the

list.

The Yakima and Pullman

stores will close in April and stores in Spokane and Lacey will close in March.

Shopko announced Jan. 16 that it has

filed for Chapter 11 bankruptcy.

“This decision is a difficult, but

necessary one,” said CEO Russ Steinhorst in a statement. “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.”

Shopko is also relocating more than 20 of

its optical centers to freestanding locations and conducting an auction for its

pharmacy business. Throughout this process, all Shopko optical centers and

pharmacies remain open.

The company, which employs more than

18,000 people, said the court filing will allow it to pay wages, salaries,

benefits and to pay vendors and suppliers.

Shopko has obtained up to $480 million

debtor-in-possession financing to help fund and protect its operations during

the Chapter 11 process, according to a company news release.

Shopko opened its first

store in Green Bay, Wisconsin, in 1962. It operates more than 360

store in 26 states.