Gottschalks looks to liquidate some assets

[March 31, 2009]  FRESNO, Calif. (AP) -- Gottschalks says it won't be able to avoid liquidation and will sell merchandise and other items at its retail stores and distribution center.

The retailer, which sought Chapter 11 bankruptcy protection in January, had hoped to possibly sidestep the action after talking to the Shandong Commercial Group General Corp., a Chinese government-owned conglomerate, about a potential buyout.

"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," Chief Executive Jim Famalette said in a statement.

The proposed liquidation still needs approval from the Bankruptcy Court for the District of Delaware, which will hear the case Wednesday.

[Associated Press]

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