U.S. regional department store chain Gottschalks will be liquidated after it failed to attract a buyer, Reuters and other media reports.
A joint venture of liquidators including SB Capital Group LLC, Tiger Capital Group LLC, Great American Group LLC, and Hudson Capital Partners LLC won the auction for the assets of Gottschalks, Larry Gottlieb, chair of the bankruptcy and restructuring practice at law firm Cooley Godward Kronish LLP, told Reuters.
The results of the auction are subject to bankruptcy court approval. Going-out-of business sales at the chain are expected to begin on or around April 3, Gottlieb reportedly said.
Fresno, California-based Gottschalks filed for bankruptcy protection in January after a failed deal with investor Everbright Development Overseas Ltd to invest up to $30 million in exchange for a stake in the company.
The company had operates approximately 58 department stores and three specialty apparel stores in six western states.
The liquidator group has agreed to guarantee 98 percent of the cost of the company’s inventory, Gottlieb reportedly said. The funds can eventually be used to repay the chain’s creditors.