Gottschalks agrees to liquidate

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Regional department store chain Gottschalks Inc. is going out of business after failing to successfully reorganize its operations under Chapter 11, the Fresno-based company said today.

The 105-year-old chain, which filed for bankruptcy protection in January, sells brand-name fashion apparel, cosmetics, shoes, accessories and home merchandise. Most of its locations -- 55 department stores and three specialty apparel stores -- are in California.

The liquidation still needs to be approved by a Delaware Bankruptcy Court, which is scheduled to consider the proposal Wednesday. If approved, the liquidation sale could begin as early as Thursday and is expected to be completed by July 15.

‘Despite all our efforts at earnest negotiations, we were unable to reach an agreement with our creditors, lenders and bidders,’ Chief Executive Jim Famalette said. ‘Regrettably, liquidation is now the only path for our company. We are deeply disappointed with this outcome.’

-- Andrea Chang