Optical Planned to Relocate to Freestanding Locations
A private investment firm has purchased Shopko Optical and announced plans to relocate the business to freestanding locations. This comes two months after Shopko announced that all of its retail stores were closing.
Private investment firm Monarch Alternative Capital LP made the official announcement on May 16, after having previously announced acquisition plans.
Andrew Herenstein, Co-founder and Managing Principal of Monarch, said in a statement:
“We are excited to welcome Shopko Optical into our portfolio and to invest in the company’s growth as we move forward with our strategy. Monarch has a long, successful history of investing in great companies undergoing transitions and working alongside their leadership teams to build strong, vibrant businesses of the future.”
Russ Steinhorst, CEO of Shopko, said, “As we move forward with our plans to operate 80 freestanding optical locations, we continue to be dedicated to our patients, doctors, opticians and the communities we serve. We encourage anyone with questions to please get in touch with our team. We appreciate the continued patronage of our patients and their understanding during what we hope to be a continued smooth transition.”
Shopko Optical plans to open 80 freestanding locations in 2019 with “further growth expected in 2020 and beyond.”
Monarch Alternative Capital LP is a private investment firm with offices in New York and London. The firm focuses primarily on the debt of distressed and bankrupt companies and has a long standing and successful track record in the distressed debt asset class, according to their website.
The sales agreement permits Monarch affiliate “Shoptikal LLC” to purchase the optical business for $8.5 million in cash. Shopko is expected to close all of its remaining retail stores by June 16, and has filed for Chapter 11 bankruptcy protection.