Wisconsin-based Shopko Stores filed for Chapter 11 bankruptcy protection Wednesday and announced it will close 105 stores as part of its reorganization plan.

The Dixon store at 1350 N. Galena Ave. is not on the closure list released by the company. Two of the 10 stores in Illinois – Dwight and Mount Carmel – are on the list.

Several pharmacies are on the closure list, including those at stores in Freeport and Quincy. The company plans to auction off the remainder of its pharmacy business, but will move several of its optical centers to separate locations and try to grow that part of the business.

In its bankruptcy filings, Shopko reported assets of less than $1 billion and liabilities of between $1 billion and $10 billion.

Shopko was able to secure $480 million in financing from a lending group so it can pay its vendors and employees. The financing will give the company an opportunity to save the stores.

McKesson Corp., one of the retailer’s drug suppliers, says Shopko owes the company $67 million. McKesson took Shopko to court in an attempt to prevent the pharmacies from selling its drugs.

The company’s leader said the company’s decision was difficult, but necessary.

“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,” CEO Russ Steinhorst said in a news release.

The company had previously announced the closing of more than 60 stores and added 38 more to the list on Wednesday. Shopko has more than 360 stores in 24 states with 18,000 employees.

For the stores that remain open, it will be business as usual, the company said.

“Our customer programs will be offered as normal at our continuing stores. Except for those stores that we are closing, we are continuing to honor return policies, warranties, gift cards and merchandise credits, as well as our loyalty programs,” the news release said.

The changes will come as the pharmacies are auctioned off and the optical centers leave for new locations. There is no timetable for the process, but it’s likely to come quickly. The pharmacies have been a big drain on Shopko, while the company’s first freestanding optical centers that were opened last year turned in encouraging financial results. The expansion of the optical business has been identified as a possible growth driver and savior.

Shopko is owned by Sun Capital Partners, a Florida-based private-equity firm that also owned Gordman’s, a retailer that filed for bankruptcy 2 years ago. Shopko was founded by a pharmacist in 1962, and became a publicly traded company in 1991. Sun Capital took the retailer private when it bought the company in 2005.

The latest closure list

The complete Shopko closing list can be found at info.shopko.com/closing-locations.pdf