Gordy's Market announces possible closure, mass layoff unless "s - WXOW News 19 La Crosse, WI – News, Weather and Sports |

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Gordy's Market announces possible closure, mass layoff unless "suitable buyers" found

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Eau Claire, WI (WXOW) - -

The Wisconsin Department of Workforce Development (DWD) sent out an alert warning Wednesday, saying more than 1,000 Gordy's Market employees at 25 Gordy's sites may be out of work in the next 60 days.

In a letter, which can be read in full below, sent to employees and the DWD, Gordy's Chippewa Foods, Inc. stated it is attempting to find "suitable buyers" to purchase the Gordy's Entities. It also stated:

"If we are unable to find suitable going concern buyers for any of the Gordy's Entities, or if the buyers of a Gordy's Entity do not hire substantially all of the employees of the Gordy's entity, a mass layoff or plant closing may follow..."

RELATED: Gordy's Market faces $86 million lawsuit

The letter stated:

"business circumstances may change, and that all employees may not be permanently laid off if the Gordy's Entities are purchased and remain operational".

Gordy's said healthcare benefit coverage for employees and their dependents may also be terminated after 60 days, beginning Aug. 29, 2017.

News 19 reported one week ago when Gordy's Market closed three of its "underperforming" stores in Stanley, Spencer and Richland Center. Previously, they also closed three other stores in northwestern Wisconsin, including Hayward, Chippewa Commons in Chippewa Falls and Eau Claire. News 19 also reported Festival Foods signed a definitive agreement to purchase three Gordy's Market stores in Eau Claire and Tomah.

This is a developing story. Stay with News 19 on-air and online for the latest details.

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