Green Bay, WI - One of Rochester's Shopko locations is targeted for closure under the Chapter 11 bankruptcy reorganization announced today by the Wisconsin based retailer.

A news release says ShopKo has obtained up to $480 million in debtor-in-possession financing from Wells Fargo and other lenders to help fund and protect its operations during the reorganization process. Despite the infusion of cash, ShopKo announced it will be closing an additional 38 stores and auctioning off its pharmacy business. In addition, over 20 ShopKo optical centers will be relocated to freestanding locations.

Five of the stores on the closure list are in Minnesota, including the south location in Rochester along South Broadway next to Menards.  The list indicates it is scheduled to close for good on April 15th. The city's other Shopko location, along 37th Street, will remain open. The other Minnesota Shopko locations slated to close are in Fairmont, Paynesville, Mahnomen, and Warroad. A complete of the 38 affected stores can be found here.

“This decision is a difficult, but necessary one,” said Russ Steinhorst, Chief Executive Officer. “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.”

Last week, a major pharmaceutical company predicted the bankruptcy filing would take place this week. The information was shared when McKesson Pharmaceutical asked the court for an injunction barring ShopKo from selling any more of its medications until it received payment for the medicine supplied to the retail chain last fall.