Everbright pulls out of $30 million Gottschalks deal   

-- Home Textiles Today, 12/19/2008 1:37:00 PM

Fresno, Calif. – Regional department store chain Gottschalks said the $30 million investment agreement in the company by Everbright Development Overseas Securities Ltd. has been terminated.

In an 8-K filed yesterday with the Securities and Exchange Commission, Gottschalks said Everbright terminated the agreement as of Monday, Dec. 15. “Everbright exercised its right to terminate the Investment Agreement pursuant to a limited due diligence review period,” which the company said expired on that day.

The agreement would have set up exclusive direct sourcing and wholesale structures – and would have delivered controlling interest in Gottschalks to Everbright, which is based in the British Virgin Islands and has a network of facilities in Asia.