CALIFORNIA BUSINESS MINUTE
Gottschalks
03-31-09
Hi, I am Tim Johnson and welcome to the California Business Minute.
Fresno-based Gottschalks Inc., a regional department and specialty store announced its closure.
Its Chairman and CEO announced in a written statement the pending closure of the chain. The
Company operates 64 full-line department stores in California, Washington, Alaska, Idaho, Oregon
and Nevada. The Company also operates 11 specialty stores. Gottschalks has operated for 100
years, founded by Emil Gottschalk in 1904. In 1986, when the Company announced its initial public
offering, it operated 10 department stores. Since then, a total of 54 department stores and 11
specialty stores have been added employing over 5,000. The company has been impacted by the
downturn in the economy and filed for bankruptcy protection in January. Unfortunately, it has been
unable to secure funding or a buyer, thus will begin to lay-off employees and close stores.
The stores in California are located in Antelope, Antioch, Auburn, 2 stores in Bakersfield, Capitola,
Chico, Clovis, Davis, Elk Grove, Eureka, 3 stores in Fresno, Hanford, Hemet, Indio, Merced, 2
stores in Modesto, Oakhurst, Palm Springs, Palmdale, Redding, Redlands, Sacramento, San
Bernardino, San Luis Obispo, Santa Maria, Santa Rosa, Sonora, Stockton, Tracy, Victorville,
Visalia, Watsonville, Woodland and Yuba City.
Despite all our efforts at earnest negotiations, we were unable to reach an agreement with our
creditors, lenders and bidders to structure a going concern bid by the court-imposed deadline,
says Jim Famalette, chairman and chief executive officer of Gottschalks in a written statement.
As early as Thursday, April 2, the stores are expected to start going out of business sales. Once
the inventory is sold, then buyers will be sought for the real estate. Most of Gottschalks locations
are shopping mall leases, but the company does own some real estate outright.
I am Tim Johnson and this has been the California Business Minute.
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