Gottschalks requests approval of $2.25 million Eureka property sale

By Caroline Salls

Pittsburgh, Oct. 13 - Gottschalks Inc. requested court approval of the proposed $2.25 million sale of its Eureka, Calif., property to the Carrington Co., according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

If Gottschalks chooses to enter into an alternate transaction, Carrington will receive a $50,000 break-up fee.

As previously reported, the company entered into a stalking horse agreement with Hilco Real Estate Holdings, LLC for the Eureka property in July. However, Gottschalks said that agreement was terminated without payment of a break-up fee.

A hearing is scheduled for Oct. 27.

Gottschalks, a Fresno, Calif.-based regional department store chain, filed for bankruptcy on Jan. 13, 2009. Its Chapter 11 case number is 09-10157.

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