Shopko has announced that it filed for Chapter 11 bankruptcy on Wednesday and will close 38 store locations.

The restructuring plan will allow Shopko to continue operations while providing relief of “excess debt and ongoing competitive pressures,” the company said. Shopko has received debtor-in-possession financing of $480 million to “fund and protect its operation during the Chapter 11 process.”

As a result, Skopko has confirmed it will close 38 stores and relocate 20 optical centers. The optical centers will be moved to freestanding locations while Shopko’s pharmacy business will be sold at auction. Based on the positive performance of Shopko’s three freestanding optical centers, the company said it will continue to grow this segment of its business by adding more locations in 2019.

The company did say that both its optical centers and pharmacies will remain open during the Chapter 11 restructuring process.

Through the Chapter 11 filing, Shopko has requested that the court allow it to continue paying wages salaries, benefits, vendors, and suppliers.

“This decision is a difficult, but necessary one,” Shopko CEO Russ Steinhorst said. “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 operates more than 360 stores in 26 states. The company was founded in 1962.

View the list of stores closing here.

Shopko Shopko has filed Chapter 11 bankruptcy and will close some store locations. People walk past a closing sign outside an electronic store holding a going-out-of-business Nov. 21, 2008 in Coral Gables, Florida. Photo: Getty Images/Joe Raedle