Shopko said that despite the company’s best efforts, it was unable to find a buyer for its go-forward business as a going concern, and will now liquidate its operations.
The company said it will commence an orderly wind-down of its retail operations beginning this week. Further, the company is evaluating strategic options for its optical business.
The company will not move forward with an auction that it previously contemplated, and Gordon Brothers will now oversee a liquidation process that is expected to conclude 10 to 12 weeks from now.
Shopko said it is committed to ensuring the orderly wind-down of operations that minimizes the impact of this development on its teammates, customers, vendors and the communities it serves.
“This is not the outcome that we had hoped for when we started our restructuring efforts,” said Russ Steinhorst, CEO, Shopko. “We want to thank all of our teammates for their hard work and dedication during their time at Shopko.”
After filing for Chapter 11 bankruptcy protection in January, Shopko proceeded with restructuring efforts while it expanded the number of stores it planned to close. In February, in a statement provided to HomeWorldBusiness.com by Shopko, the retailer said it had planned to close 250 stores resulting in a regional retailer with a footprint of 120 stores, and that it was “hopeful” it would emerge as a stronger company.