GREEN BAY, WI — Retail chain Shopko announced that it will wind down its operations and that it is “evaluating strategic options” for its optical business.
The company said in a press release that despite its best efforts, it was “unable to find a buyer for its go-forward business as a going concern.”
“As a result, Shopko will commence an orderly wind-down of its retail operations beginning this week,” the company stated.
USA Today reports that Shopko announced in February its intent to close 250 stores, which would amount to 70 percent of its locations. That plan came as the company “attempted to scale back the business and work through bankruptcy to restore profitability and attract a buyer or investor,” according to the newspaper.
Now, the company instead plans to close all stores by mid-June, USA Today reports.
The company will not move forward with the auction that it previously contemplated, and Gordon Bros. will oversee a liquidation process that is expected to conclude 10 to 12 weeks from now, according to the release.
“This is not the outcome that we had hoped for when we started our restructuring efforts,” said Russ Steinhorst, CEO. “We want to thank all of our teammates for their hard work and dedication during their time at Shopko.”
As for the optical business, Shopko had originally hoped to spin off the business into standalone locations, USA Today reports.
Now the optical business will be among the assets that Shopko seeks to liquidate, according to the newspaper.
WLUK-TV reports: “As of now, four Shopko optical locations will remain open until further evaluation: Mequon, Oshkosh, Waukesha and Omaha, Nebraska.”
In its Jan. 16 bankruptcy filing, Shopko reported having less than $1 billion in assets and between $1 billion and $10 billion in liabilities.