Gottschalks auction for going-concern sale pushed back to March 30 to allow further negotiations

By Jennifer Lanning Drey

Portland, Ore., March 3 - Gottschalks Inc. received approval from the U.S. Bankruptcy Court for the District of Delaware to extend its auction date to March 30 to allow for further negotiations related to potential going-concern offers, according to a company news release.

Gottschalks said it remains in active discussions with multiple potential buyers and continues normal business operations in its stores.

"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," Jim Famalette, chief executive officer of the company, said in the release.

As previously reported, when requesting approval of the bidding procedures related to the going-concern sale of substantially all of its assets, Gottschalks said it was looking to name a stalking horse bidder by March 2.

At the time, the company said it wanted to move quickly with the sale because the liquidity provided under its debtor-in-possession facility would only assure its operations for a limited time.

Gottschalks also received court approval Tuesday to implement an executive incentive plan, according to the release.

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

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