Shopko bankruptcy plan now calls for all stores to close by summer
Mar 18, 2019 01:59PM
From the Green Bay Press Gazette - March 18, 2019
Shopko will liquidate its assets and close all of its remaining locations by June, according to a document filed Monday in U.S. bankruptcy court.
The company stated in a media release that it was unable to find a buyer for the retail business and will begin winding down its operations beginning this week. The announcement will bring an end to the brick-and-mortar business that began with one location on Green Bay's west side in 1962.
"This is not the outcome that we had hoped for when we started our restructuring efforts," Shopko CEO Russ Steinhorst said in a statement. "We want to thank all of our teammates for their hard work and dedication during their time at Shopko."
The company had in February had announced plans to close 250 stores, or about 70 percent of its locations.
That list was expanded at noon Monday with the inclusion of 120 stores that Shopko had hoped to keep open as it sought a buyer. The new list includes locations at Bay Park Square in Ashwaubenon, East Town Mall in Green Bay, and the Northland Avenue location in Appleton.
The company had scheduled an auction for Tuesday morning in the hopes of driving up the price of initial bids that were due last week. On Monday, it announced the auction was canceled and that one of its bankruptcy consultants will oversee a liquidation process over the next 10-12 weeks.
The company said it continues to evaluate options for its optical business. Shopko had originally hoped to spin the business into standalone locations as part of its reorganization.
Shopko and its affiliates filed for bankruptcy protection on Jan. 16 citing assets of less than $1 billion and liabilities between $1 billion and $10 billion. It had sought a buyer that would keep a smaller number of the company's brick and mortar locations operating beyond bankruptcy.
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