Gottschalks liquidating 58 stores
Department store chain expects to complete sale by July 15
Furniture Today Staff -- Furniture Today, April 1, 2009
FRESNO, Calif. — Gottschalks, the 105-year-old department store chain based here that filed for Chapter 11 protection in January, will liquidate its remaining 58 stores, according to news reports.
"Regrettably, liquidation is now the only path for our company," CEO Jim Famalette said in a statement Tuesday, according to a report in the Palm Springs, Calif., Desert Sun.
The statement came after a failed effort to sell the company to Chinese conglomerate Shandong Commercial Group General Corp. The retailer also was unable to reach an agreement with creditors, lenders and bidders by a court-ordered deadline, which could have allowed it to stay in business.
Gottschalks operates 55 department stores and three specialty closing stores, according to reports.
Pending approval by the U.S. Bankruptcy Court in Delaware, SB Capital Group, Tiger Capital Group, Great American Group and Hudson Capital Partners will handle the liquidation, which could start as soon as Thursday. The sale is expected to be completed by July 15. |
