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WORLAND – On Wednesday, Feb. 6, Shopko announced the closure of an additional 139 Shopko and Shopko Hometown stores including the store in Worland.

The closures that came after the first closure announcements in December included the store in Greybull.

Last month, on Jan. 16, Shopko, a leading operator of general merchandise stores throughout the Central, Western and Pacific Northwest regions of the U.S., announced that it, along with its subsidiaries, had filed voluntary petitions for a court-supervised financial restructuring under Chapter 11 of the United States Bankruptcy Code. 

Michelle Hansen, manager of public relations for Shopko & Shopko Foundation, said last week, “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 initial store closures announced in December will be closing this month. The closures, including the Worland store, announced last week, have an estimated closing date of May 12.

In addition to the stores, Hansen announced that Shopko will be relocating approximately 50 optical centers in closing stores to new freestanding locations.

Hansen said, “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.”

The company had announced the closure of the pharmacy in the Powell store. The Powell Shopko store is not on the most recent closure list, info.shopko.com.

Other Wyoming stores on the list include, the Lander store, with a closing of May 5, Green River May 12 and Mountain View May 12.

Regarding the bankruptcy, the company announced in January, that they are seeking to facilitate the restructuring as a result of excess debt and ongoing competitive pressures. 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. Shopko has obtained up to $480 million debtor-in-possession (DIP) 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. This incremental liquidity will ensure that suppliers and other business partners and vendors will be paid in a timely manner for authorized goods and services provided during the Chapter 11 process, in accordance with customary terms.

“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.”

FILLING THE VOID

The closing of the store and pharmacy over the next several months leaves a void in the community that others stores are hoping to be able to fill.

According to Rickers Pharmacy owner and pharmacist Jeff Yule, “We have a plan in place. We have increased our pharmacy staff.”

He said recently the Shopko Pharmacy has not been able to get some inventory so they have seen an increase of customers at Rickers, located inside Blair’s Super Market.

Yule said, “Most days we will have two pharmacists on staff per day. We’ve purchased a new register to help the flow at check out.”

He said he has also had discussions about adding on but that is long-term.

In the short-term, he said, “I believe we’ll be able to take on the new customers.”

Rickers Pharmacy has been in Worland for more than 40 years, initially located downtown before moving into Blair’s.

As for the products inside the Shopko store, Sabrina McClain, member of the Revitalize Worland Committee said, “This closing doesn’t mean Worland is out of business. There are a lot of businesses here and these businesses are looking at trying to recruit new businesses or bring in new product” to fill the void left with the closing of Shopko.

She added that there are several stores and businesses that already offer many of the products, not necessarily the same brands, that are offered at Shopko, clothing, shoes and boots, groceries, home décor, craft supplies, toys, pet food and supplies, gift items, small appliances, office supplies including printer ink and more.

Some areas are currently lacking but this is where some business stores are looking at expanding their product line, McClain said, is more diverse sporting goods, tennis shoes and casual shoes and kids clothes.

McClain said people need to be careful not to jump to the worst-case scenario when a business closes. “They don’t realize all the work going on behind the scenes to attract businesses.”

McClain reminded residents, however, to understand that the small businesses in town cannot get the volume breaks that larger discount stores like Shopko can get and thus they don’t get the price breaks on items.

“We do offer a variety of products at affordable prices,” she said.

She added that if people support the local businesses it helps the local economy and can help create jobs if the businesses are able to expand.