Department store chain Gottschalks files for bankruptcy protection

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Add Fresno-based retailer Gottschalks Inc. to the growing list of retailers that have had to file for bankruptcy protection.

The regional department store chain said today that it had filed for Chapter 11 and put itself up for sale. The company said business at its stores would continue as usual during the reorganization.

Gottschalks, which sells apparel, accessories and home merchandise, currently operates 58 department stores and three specialty apparel stores in six states: California, Washington, Alaska, Oregon, Nevada and Idaho. Its Southern California locations include stores in Palmdale, Riverside and San Bernardino.

Jim Famalette, chief executive of Gottschalks, said the filing ‘was a very difficult but necessary decision.’

‘While we have aggressively pursued a number of important steps over the past year to improve our performance and reduce costs,’ he said, ‘the persistent challenges in the economy and recent unexpected reductions to our borrowing capacity as a result of tightening credit markets have left us with no other recourse than to pursue a sale of the company under court approval in a Chapter 11 proceeding.’

-- Andrea Chang