Gottschalks bankruptcy auction date extended

-- Home Textiles Today, 3/4/2009 9:35:00 AM

Fresno, Calif. – Troubled regional department store Gottschalks received bankruptcy court approval to extend its auction date until March 30, “to allow for further negotiations related to potential going concern offers.”

Gottschalks stated that it “remains in active discussions with multiple potential buyers and continues normal business operations in its stores.”

Gottschalks filed Chapter 11 on Jan. 14 in the U.S. Bankruptcy Court for the District of Delaware.

The 61-store retailer said the court also approved its Employee Retention Plan and Executive Incentive Plan, “finding that they were appropriate in assisting the company to achieve its goals.”

Jim Famalette, chairman and ceo, said, “We are pleased the court has extended the auction date, and we continue to negotiate in good faith with potential buyers to keep Gottschalks as a going concern.”