Jan. 10, 2018

Shopko is closing two more locations in South Dakota while reports indicate a bankruptcy filing is coming.

Stores in Chamberlain and Custer will begin liquidation sales Friday. An assistant manager in Custer said the site will close by April 7. A Chamberlain manager was not sure when the store would close.

In December, the privately held company announced it was closing 39 stores, including locations in Dell Rapids, Redfield, Wagner and Webster. Shopko has 363 stores in 24 states, including 20 in South Dakota.

Shopko could file for bankruptcy protection next week, according to multiple reports. The move is being driven by $67 million the retailer owes a pharmaceutical drug supplier.

An attorney for McKesson Corp. said during a court hearing this week that Shopko could file for bankruptcy as soon as Jan. 15. He argued the company would struggle to collect what it’s owed if Shopko filed for Chapter 11 protection.

Shopko hasn’t commented on the reports.

Shopko closed the pharmacies in its two Sioux Falls stores in December and transferred prescriptions to Hy-Vee pharmacies.