Gottschalks Files Bankruptcy, Goody's to Liquidate Stores
Gottschalks, a Fresno, California based department store chain founded in 1904, has filed for bankruptcy. Bloomberg says the company is looking for a buyer. Most of Gottschalks stores are in California.
Gottschalks, founded in 1904 in Fresno, California, is looking for a buyer. Goody's, based in Knoxville, Tennessee, plans to liquidate after entering bankruptcy for the second time in seven months. Both companies filed their Chapter 11 petitions in U.S. Bankruptcy Court in Wilmington, Delaware.
"Persistent challenges in the economy and recent unexpected reductions to our borrowing capacity as a result of tightening credit markets have left us with no other recourse," Gottschalks Chairman Jim Famalette said today in a statement.
Goody's filed for Chapter 11 bankruptcy earlier this month. They now plan to liquidate the remaining 282 stores.
