Tuesday Mar 31 2009
Gottschalks stores slated for liquidation
Deal could be approved Wednesday
FRESNO, Calif. (AP) — Gottschalks — which has a store in Auburn — says it won't be able to avoid liquidation and will sell merchandise and other items at its retail stores and distribution center. The retailer, which sought Chapter 11 bankruptcy protection in January, had hoped to possibly sidestep the action after talking to the Shandong Commercial Group General Corp., a Chinese government-owned conglomerate, about a potential buyout. Chief Executive Jim Famalette says that despite Gottschalks' efforts at earnest negotiations, the retailer was unable to reach an agreement with creditors, lenders and bidders. The proposed liquidation still needs approval from the Bankruptcy Court for the District of Delaware, which will hear the case Wednesday.