Final liquidation
In January 1998, Caldor had $1.2 billion in liabilities and $949 million in assets, one of the worst deficits the company ever had. Sales for financial year 1997 were $2.496 billion (around $4.95 billion as of June 2025), down from 1995 peak of $2.765 billion (around $5.85 billion as of June 2025); losses shrunk from $301 million in 1995 to less than half of that, that is, $132 million in 1997.[23] A few months later, Caldor closed another 12 stores, mostly in the Washington, D.C., area. This, along with the chain's slow financial progress, caused its secured creditors to file a motion that would have forced Caldor to convert its bankruptcy, from which the company had still not emerged, from a Chapter 11 filing to a Chapter 7 filing; this would have required Caldor to liquidate all of its stores and cease operations. The creditors believed their best option was for Caldor to liquidate rather than continue to operate. In addition, Caldor's stock was delisted on the New York Stock Exchange in September 1997.[24]
Caldor responded by seeking mediation to resolve the dispute, but in January 1999 the company deduced that there was nothing they could do to save themselves. On January 9, Caldor announced it would not place any more orders for, nor would they accept shipments of, new merchandise for their stores. Thirteen days later, on January 22, Caldor's chairman announced the company had no alternative but to wind down business and lay off all of their staff at the corporate headquarters in Connecticut.[25] One day after that, on January 23, 1999, liquidation sales began at the remaining 145 stores. By April 1999, most of the Caldor locations had sold off all their merchandise and closed their doors; the last store to close did so on May 15, 1999. At the time of the liquidation, Caldor employed over 24,000 people.
Many Caldor stores eventually were purchased by retailers such as competitors Kmart, Target, and Walmart, and many metro New York Caldor stores were bought by Kohl's as part of Kohl's entry into the New York retail market.[26]
