Gottschalks open despite bankruptcy
The Gottschalks store in Moses Lake on Friday. Gottschalks says existing stores will remain open, despite the company's filing for Chapter 11 bankruptcy protection. Photo by Lynne Lynch/Columbia Basin Herald
MOSES LAKE — The Moses Lake Gottschalks store will remain open after the business filed for Chapter 11 bankruptcy protection, the company confirmed Friday.
“We will continue business as usual and our stores will continue to operate as normal throughout this process as we deliver to our customers quality product, friendly service and great value as always,” according to a statement released by the company.
The company cited “a combination of uncontrollable factors” for the filing, “including the persistent challenges in the economy and recent unexpected reductions to our borrowing capacity as a result of tightening credit markets.”
Filing for Chapter 11 means the Fresno, Calif.-based company has some relief from bill collections from suppliers and creditors while it reorganizes financially, according to the company’s Web site.
The company is looking into selling the business or finding a third-party investor, the company states.
Store employees will continue to receive their wages and the company expects banks will continue to accept payroll checks, the company states.
“There’s definitely a market here for that kind of thing,” said Jon Smith, communications and research manager with the Grant County Economic Development Council.
He added the situation didn’t appear to be one where the company overextended themselves.
“It seems very likely to me there would be a change of ownership,” Smith said.
Gottschalks has stores in Washington, California, Alaska, Oregon, Nevada and Idaho.
Gottschalks sells clothing, cosmetics, shoes, accessories and home merchandise.
A Moses Lake store employee referred the Columbia Basin Herald to corporate headquarters for comment. Further details were unavailable.