Caldor, Unable to Satisfy Creditors, to Shut Its Doors
NORWALK Caldor Corp., one of the original
modern discount retailers, said Friday it will go out of
business, closing 145 stores and laying off up to 20,000
The company, which failed to emerge from Chapter 11
bankruptcy, was founded in 1951 and now operates stores in nine
East Coast states.
The company, with annual sales of about $2.5 billion, said
it plans to sell off its inventory through going-out-of-business
sales beginning in several weeks and lasting through mid-May.
A company spokeswoman said Caldor will retain many store
employees the bulk of the 20,000-member staff during the
going-out-of-business process. After that, the company is
looking at severance packages.
"We're working on a package for employees, including
severance ... but it's too early to discuss specifics," said
Wendi Kopsick, a spokeswoman for Caldor.
Caldor Chairman Warren Feldberg said the retailer decided to
close its doors after falling short of performance goals,
bringing opposition from creditors to future reorganization