(Ian Ritter is national online editor for GlobeSt.com/RETAIL.)

GREEN BAY, WI-ShopKo Stores executives have received a counter offer to buy the company after Developers Diversified Realty and a group of private equity firms submitted a $26.50-per-share, or about $800-million bid for the chain earlier this month. Goldner Hawn Johnson & Morrison, which submitted the first proposal earlier this year, a $25.50-per-share offer, has now upped its proposal to $27.

Executives have now asked bidders to submit their "best and final offer." Shareholders will meet on Oct. 26 to vote on the deal.

Joining Developers Diversified in its offer are Sun Capital Partners Group, Lubert-Adler Partners and Elliott Management Corp. Executives at Cleveland-based Developers Diversified are interested in ShopKo after closing on 32 Mervyns department stores last month for $319.1 million with joint-venture partner Macquarie Bank Ltd. Sun Capital and Lupert-Adler are partial owners of the 250-store chain, which they acquired last year with Cerebus Capital Management and Klaff Partners.