(Digital News Report) First it was Circuit City and Mervyns, and now it is Gottschalks. Gottschalks may be closing some or all of their stores including the store in Watsonville. The owner of the building has already begun looking for new tenants.
On Tuesday the closures was not final yet, and a bankruptcy judge still needed to decide on their fait. Late yesterday the company released a statement saying that they had completed their court-supervised auction of assets.
The company along with their creditors, secured and unsecured lenders has agreed to liquidate a “certain” amount of the companies assets by a joint venture comprised of SB Capital Group, LLC, Tiger Capital Group, LLC, Great American Group, LLC and Hudson Capital Partners.
Gottschalks, which has been in business for 105 years, failed to reorganize after filing under Chapter 11 bankruptcy in January. The liquidation agreement still needs to be approved by a Delaware Bankruptcy Court which will meet today.
If approved, the liquidation will continue through July 15th.
The Watsonville building owner, William Hansen, says he has some parties interested in the location, but declined to mention any names. The closing may not be a blessing for downtown merchants who depend on anchors like Gottschalks.
By Dan Wilson