Friday, January 09, 2009

Gottchalks to file for bankruptcy?

Gottchalks update:

Gottschalks employees have been told to quickly cash pending paychecks and to expect a bankruptcy filing as soon as today, the Business Journal has learned.

Employees say the department store chain may also announce the closing of about 15 stores.

Meanwhile, Gottschalks executives have also made contact with at least one major liquidation firm that specializes in going out of business sales for distressed retail operations.

On a more hopeful note, Women’s Wear Daily, a retail trade publication, reported on its website today that Gottschalks has been in negotiations with Everbright and El Cortes Ingles that would call for both to put up $25 million for a $50-million infusion into the company and that a vote on the proposed investment could come as early as today.

El Cortes Ingles is Spain’s largest department store chain and owns about 16 percent of Gottschalks through the Fresno-based retailer’s 2000 acquisition of Harris Co.

4 comments:

Rob Dawg said...

C&C,
Forget it. Bill isn't listening to that comment anymore. Thanks for the link.

Besides, the amount of overbuilding isn't the whole story. I looked for some space in my hood for sm_landlord a few weeks ago and the empties left over from the S&L bust were still rotting away. We never even fully adsorbed those.

http://www.nytimes.com/2008/12/17/business/17distress.html

Bakersfield Bubble said...

Rob - Yeah..he underestimated the housing bust, he still thinks UE will peak at 8% and thinks CRE will be only modestly hurt...I think Jas is going to be more correct than him and I am starting to think Jas crticism of his is warranted.

Bakersfield Bubble said...

"the empties left over from the S&L bust were still rotting away. We never even fully adsorbed those. "



YES!!

Bill (CR) is missing so much...oh well, I will be there to rub his nose in it in 2010. :)

foreclose_me said...

A friend went to Gottschalk's two or three days go (the day these stories started hitting) and tried to cash in a gift card. They wouldn't do that, but the employees were all in a very surprised state about the news.

It would probably really open your eyes to be told to cash the paycheck quick!