SIOUX CITY -- Sioux City's Shopko at 3025 Hamilton Blvd. will remain open as the retailer reorganizes under a Chapter 11 bankruptcy petition filed Wednesday.
Meanwhile, the Shopko Hometown in Onawa, Iowa, is among the 38 stores the Wisconsin-based chain has targeted for closure. The Shopko Hometown in Cherokee, Iowa, is also on the list released Wednesday. The company last month confirmed the Cherokee closing, which is expected to happen by early March. Onawa's Shopko is expected to close by mid-April.
The company says excessive debt and ongoing competitive pressure are forcing it to seek bankruptcy protection from creditors. Shopko is reporting assets of less than $1 billion and liabilities of between $1 billion and $10 billion.
Shopko says it plans to continue operating through Chapter 11 reorganization after securing $480 million in financing from a group of lenders led by Wells Fargo Bank. The financing will allow Shopko to continue to pay employees, vendors and suppliers.
Last month, the Green Bay-based chain announced plans to close about 40 of its more than 300 stores across the country. The new list of 38 additional stores includes 11 in Iowa, eight stores in Nebraska and seven in South Dakota.