Gottschalks unable to avoid liquidation of assets - Spokane, North Idaho News & Weather KHQ.com

Gottschalks unable to avoid liquidation of assets

Its unclear what the liquidation will mean for the Gottschalks on Spokane's South Hill Its unclear what the liquidation will mean for the Gottschalks on Spokane's South Hill

FRESNO, Cali. - Gottschalks Inc. said Tuesday that it won't be able to avoid liquidation and will sell merchandise and other items at its retail stores and distribution centers.

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.

Spokesman-Review business columnist and KHQ contributor Bert Caldwell said early Tuesday on KHQ Local News Today that it was still unclear how the move would affect the Gottschalks store located on E. 29th on Spokane's South Hill.

"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. Regrettably, liquidation is now the only path for our company," Chief Executive Jim Famalette said in a statement.

Regional retailers such as Gottschalks became particularly vulnerable during the recession because they can't purchase goods as cheaply as larger retail chains. The Fresno, Calif.-based company had assets of $288.4 million and debts of $197.1 million, according to its January bankruptcy petition.

Gottschalks' assets will be purchased by a consortium of buyers that includes liquidation specialists SB Capital Group LLC of New York, Tiger Capital Group LLC of Boston, Great American Group LLC of Los Angeles and Hudson Capital Partners LLC of Massachusetts.

The proposed liquidation still needs approval from the Bankruptcy Court for the District of Delaware, which will hear the case Wednesday. The liquidation could start Thursday if approved and is targeted to end by July 15.

Gottschalks, founded in 1904, runs 55 department stores and three specialty apparel stores in California, Washington, Alaska, Oregon, Nevada and Idaho. It has 5,200 employees.
  • Most Popular StoriesMost Popular StoriesMore>>

  • Driver lands on I-90 barrier after overcorrecting

    Driver lands on I-90 barrier after overcorrecting

    Saturday, June 24 2017 2:07 AM EDT2017-06-24 06:07:22 GMT

    SPOKANE, Wash. - Firefighters say a car was driving too fast on I-90 near the state line Friday afternoon, and couldn't slow down in time to deal with traffic. The driver overcorrected and landed on the barrier. The driver suffered minor injuries. The crash caused a backup for several hours near Starr Rd. 

    >>

    SPOKANE, Wash. - Firefighters say a car was driving too fast on I-90 near the state line Friday afternoon, and couldn't slow down in time to deal with traffic. The driver overcorrected and landed on the barrier. The driver suffered minor injuries. The crash caused a backup for several hours near Starr Rd. 

    >>
  • At Glastonbury, Depp asks about assassinating the president

    Friday, June 23 2017 1:31 PM EDT2017-06-23 17:31:01 GMT

    LOS ANGELES - Johnny Depp has asked a crowd at the Glastonbury Festival when was the last time an actor assassinated a president. The remarks came during a segment Thursday in which Depp was speaking about President Donald Trump. He asked the question at the annual festival that celebrates the performing arts.

    >>

    LOS ANGELES - Johnny Depp has asked a crowd at the Glastonbury Festival when was the last time an actor assassinated a president. The remarks came during a segment Thursday in which Depp was speaking about President Donald Trump. He asked the question at the annual festival that celebrates the performing arts.

    >>
  • Homeless single father tries to turn luck around for 4-year-old daughter

    Homeless single father tries to turn luck around for 4-year-old daughter

    Friday, June 23 2017 11:09 PM EDT2017-06-24 03:09:10 GMT

    SPOKANE, Wash. George Simpkins packed his bags and moved from Ohio to Spokane to start a new job. But when he got to the Lilac City, his string of bad luck started.  “That never happened,” said Simpkins. “I’ve had temporary jobs off and on.” It’s been several years since Simpkins moved to Spokane, and the now 48-year-old hasn’t been able to keep a job, but it’s not due to lack of effort. “I’ve lost a couple of jobs because

    >>

    SPOKANE, Wash. George Simpkins packed his bags and moved from Ohio to Spokane to start a new job. But when he got to the Lilac City, his string of bad luck started.  “That never happened,” said Simpkins. “I’ve had temporary jobs off and on.” It’s been several years since Simpkins moved to Spokane, and the now 48-year-old hasn’t been able to keep a job, but it’s not due to lack of effort. “I’ve lost a couple of jobs because

    >>
HD DOPPLER 6i
/