Shopko files for Chapter 11, closes both Madison stores

Shopko has made it official, filing for Chapter 11 bankruptcy protection and closing 38 more stores, including its East and West Towne Mall stores in Madison, according to a report in the Wisconsin State Journal. The Green Bay-based retailer has 360 stores in 26 states.

Shopko cited excessive debt and ongoing competitive pressures for the move. The company has obtained $480 million in debtor-in-possession financing to help fund and protect its operations during the bankruptcy process.