Fresno, Calif. – Gottschalks Inc. today announced that, after completing the Court-supervised auction for its business, the Company, in consultation with the agent for its senior secured lenders and the unsecured creditors’ committee, has agreed to the proposed liquidation of certain of the Company’s assets by a joint venture comprised of SB Capital Group, LLC, Tiger Capital Group, LLC, Great American Group, LLC and Hudson Capital Partners, LLC. As proposed, the joint venture would be appointed by the Company to conduct the sale of merchandise located at the Company’s retail stores and distribution center and to dispose of certain of the Company’s furnishings, trade fixtures and equipment.
The proposed liquidation remains subject to the approval of the Bankruptcy Court for the District of Delaware, which is scheduled to consider the proposed liquidation on Wednesday, April 1, 2009. If approved, the liquidation may begin as early as Thursday, April 2, 2009 and is expected to conclude on or before July 15, 2009.
Jim Famalette, Chairman and Chief Executive Officer of Gottschalks, stated, ‘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. 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 filed to reorganize under Chapter 11 on January 14, 2009 in the United States Bankruptcy Court for the District of Delaware.