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Gottschalks files for Ch. 11

By   /   Sunday, January 18th, 2009  /   Comments Off on Gottschalks files for Ch. 11

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Retailer Gottschalks filed to reorganize in a Chapter 11 bankruptcy Jan. 14, raising questions about the fate of its San Luis Obispo and Santa Maria locations.

The department store chain has negotiated a $125 million debtor-in-possession financing from a group of lenders led by GE Capital, it said in a statement Jan. 14. The financing, if approved in bankruptcy court, will fund its employee wages and benefits, some vendor payments and other operating expenses while it reorganizes.

Gottschalks operates 58 department stores in California, Washington, Alaska, Oregon, Nevada and Idaho. Its largest market is California, where it has 38 stores.

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