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Shopko Now Calls For All Stores To Close

Shopko announced Monday, March 18, that it will liquidate its assets and close all of its remaining locations by June 16. The news came from a document filed Monday in U.S. bankruptcy court as well as e-mails to its media partners canceling all advertising placements.

The company stated that it was unable to find a buyer for the retail business and will begin winding down its operations beginning this week.
An auction had been scheduled for Tuesday, March 12, in the hopes of driving up the price of initial bids that were due last week. Monday, Shopko announced the auction was canceled and that one of its bankruptcy consultants will oversee a liquidation process over the next 10 to 12 weeks.
“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 announced in February that it planned to close 250 stores, or about 70 percent of its locations.
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.