Shopko Hometown in Syracuse is not on the list to be closed. (Photo by Dala Bruemmer)

GREEN BAY WIS. — Shopko, a leading operator of general merchandise stores throughout the central, western and pacific northwest regions annonced Wednesday, Jan. 16, it has filed voluntary petitions for a court-supervised financial restructuring under Chapter 11 of the United States Bankruptcy Code.

It will be closing 103 of its stores, four in Indiana. However, Shopko Hometown, Syracuse, is not on the list. Closings will begin as early as Jan. 19, with the last stores to be closed by April 15. The four Indiana stores slated for closing are in Batesville and Rockville, slated for closing April 8; and Lowell and Attica, slated for closing April 15. The remaining stores are located in Colorado, Iowa, Idaho, Illinois, Kansas, Michigan, Minnesota, Missouri, Montana, North Dakota, Nebraska , New Mexico, Ohio, Oregon, South Dakota, Texas, Utah, Washington, Wisconsin and Wyoming.

The company, according to a press release, is 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 restricting process, Shopko will continue to operate and serve its customers, vendors, partners and employees.

Shopko has obtained up to $480 million debtor-in-possession 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 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.”

Shopko is also filing customary first day motions, once approved by the court, will allow the
company to smoothly transition its business into Chapter 11, including, among other things, granting
authority to pay wages, salaries, benefits, and pay vendors and suppliers in the ordinary course for
authorized goods and services provided on or after the filing date.

Additional information is available on the company’s restructuring website at http://info.shopko.com or
by clicking on the restructuring link on www.Shopko.com. Court filings and other documents related to
the court-supervised process are available at https://cases.primeclerk.com/shopko or by calling the
company’s claims agent, prime clerk, at (844) 205-7495 or (347) 576-1550.

Kirkland & Ellis LLP is acting as the company’s legal counsel, BRG is serving as restructuring advisor and
Houlihan Lokey is acting as financial advisor.

Founded in 1962 and headquartered in Green Bay, Wis., Shopko Stores Operating Co. LLC is a $3
billion retailer that operates more than 360 stores in 26 states. Retail formats include 126 Shopko stores, providing quality name-brand merchandise, great values, pharmacy and optical services in small to mid-sized cities; five Shopko Express Rx stores, a convenient neighborhood drugstore concept; six Shopko Pharmacy locations; four Shopko
Optical locations and 234 Shopko Hometown stores, a smaller concept store developed to meet the
needs of smaller communities.

For more information, visit www.shopko.com.