Sonora, CA — The retail department store chain Gottschalks Inc. has filed for Chapter 11 bankruptcy.
The Associated Press reports that the company has put itself up for sale and negotiated a $125 million financing package with a group of lenders to remain operational while it looks for a buyer. The Fresno based retailer has 58 stores, including one in Sonora. The company says it does not have any immediate plans to close any stores.
This marks the second major retailer in the area to file for bankruptcy in the past year, as the now closed Mervyns chain filed for Chapter 7 bankruptcy, which required an immediate liquidation of assets.
Written by BJ Hansen