The post-holiday dominoes have started falling…:
Retailer Gottschalks Inc. says it put itself up for sale and has filed to reorganize in a Chapter 11 bankruptcy.The Western department store chain has assets of $288.4 million and debts of $197.1 million, according to its bankruptcy petition filed today in the United States Bankruptcy Court for the District of Delaware.
Gottschalks has negotiated a $125 million debtor-in-possession financing from a group of lenders led by GE Capital, the company said in a statement. The financing, if approved in bankruptcy court, will fund employees’ wages and benefits, some vendor payments and other operating expenses while the company reorganizes
“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,” said Jim Famalette, chairman and chief executive, in a statement.
Translation: the shit we got no one wants to buy, because anyone with any fashion sense is shopping somewhere else, and everyone else is just buying their clothes and Wal-Mart or Target, or just wearing the same wack shit from last year. WELCOME TO ’09 FUCKFACE. Get a copy of Adbusters and quit being a fucking asshole.