Washington, DC — A Chinese company that was planning to purchase a majority stake in the Gottschalks department store chain has pulled out of the deal, according to the Associated Press.
Everbright Development Overseas, Ltd., had previously agreed to purchase 75 percent of the company for approximately $30 million. Paperwork filed with the U.S. Securities and Exchange Commission stated that the Chinese firm has exercised its right to terminate the investment agreement.
Gottschalks officials have not released a statement on the matter. The Fresno based company has 59 stores, including one in Sonora.
Written by BJ Hansen