Gottschalks goes out of business

Gottschalks Inc., which has an outlet at the Marysville Mall, announced March 31 that it is proposing liquidating assets pending the approval of a bankruptcy court.

MARYSVILLE — Gottschalks Inc., which has an outlet at the Marysville Mall, announced March 31 that it is proposing liquidating assets pending the approval of a bankruptcy court.

The U.S. Bankruptcy Court for the District of Delaware approved the proposed liquidation April 1. Liquidation began April 2 and is expected to conclude on or before July 15. Gottschalks filed to reorganize under Chapter 11 Jan. 14 in that same bankruptcy court.

“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,” Jim Famalette, chair and chief executive officer of Gottschalks, stated March 31. “Regrettably, liquidation is now the only path for our company. We are deeply disappointed with this outcome and the impact it will have on our employees, customers, business partners and the communities we have served for 105 years.”

Gottschalks had spoken with a Chinese government-owned conglomerate, the Shandong Commercial Group General Corp., about a potential buyout, but instead, the regional department store chain will be selling its merchandise and other items at its retail stores and distribution center.

Gottschalks is based in Fresno, Calif., and currently operates 55 department stores and three specialty apparel stores, with a total of approximately 5,200 employees, in six Western states, including seven in Washington, two in Idaho, and five each in Oregon and Alaska. According to its Jan. 14 bankruptcy petition, Gottschalks had assets of $288.4 million and debts of $197.1 million. The company has agreed to have its assets purchased by a consortium of buyers comprised of 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.

More in Business

Dozens of restaurants, bars try to stay afloat during ban by offering take-out in Arlington, Marysville

Editor’s note: As a public service, the Marysville Globe and Arlington Times… Continue reading

Bees on a delphium. (Courtesy Photos)
Bee all you can be to help these very important insects survive

By Steve Smith Unless you have been living under a rock, you… Continue reading

Arin Losier serves a beer at the new Woody’s bar in Marysville. (Steve Powell/Staff Photo)
Fanny’s opens bar in Marysville, but Woody’s already closes due to virus shutdown by Inslee

By Steve Powell MARYSVILLE – It might have been the shortest… Continue reading

Courtesy Photo
                                Colorful carrots are fun to grow.
Veggies taste so much better when you grow your own

Last week I mentioned that it was time to plant your “cool… Continue reading

Food bank volunteers still can connect with customers. (Steve Powell/Staff Photos)
Marysville Food Bank more like a regular grocery store

By Steve Powell MARYSVILLE – In an effort to lessen the… Continue reading

Legislative briefly

Bill helps timber over carbon emissions

Find your safe place in your own garden

By Steve Smith Sometimes I feel like the world is spinning out… Continue reading

One of the buildings at the new Villas of Arlington. (Courtesy Photo)
New Arlington apartments offer sliding scale for affordability

SMOKEY POINT – The Villas at Arlington are opening. They offer 312… Continue reading

Winter Passion wallflower.
Take a wallflower for a dance in your garden

By Steve Smith When I think of the word “wallflower” or “shrinking… Continue reading

Life’s a holiday on Primrose Lane

By Steve Smith There is no doubt that spring has sprung. This… Continue reading

Be sure to be kissed by a rose by growing them correctly

By Steve Smith It’s that time of year when garden centers fill… Continue reading

Vote for your favorites in Marysville and Arlington

What are some of your favorite places in Marysville and Arlington? Through… Continue reading