Gottschalks Files for Chapter 11

[The Straight Story]

Gottschalks Files for Chapter 11

WOODLAND, CA- The Gottschalks department store in Woodland has been a staple for over 20 years. Some residents say they shop at the local retailer as often as once a week.

That may be about to change. Gottschalk's announced Wednesday it has filed for Chapter 11 bankruptcy as it tries to reorganize.

Chief executive Jim Famalette said in a statement, "Persistent challenges in the economy and recent unexpected reductions to our borrowing capacity as a result of tightening credit markets have left us with no other recourse."

The Fresno-based chain has 59 department stores, with 38 stores in California, many in the Central Valley.

"A lot of people have done their shopping there for years and years and years, so it's gonna be missed," said Woodland resident Hildur Murphy, who said she hopes it can remain open.

http://www.news10.net/news/local/story.aspx?storyid=53374&catid=2

[Wanet]

1. I live in Woodland, CA

Our mall is dying. It just lost Mervyn's and now Gottchalks. Target moved from the mall to a new big store out of town. But our Wall-Mart is thriving. -- Wanet