Gottschalks appoints liquidation team in preparation for auction

The Fresno-based parent company of Gottschalks has appointed a liquidation team to be the lead bidder in a March 30 auction to sell the chain of 59 stores.

According to documents recently filed with the U.S. Bankruptcy Court in Delaware, if the deal goes through, the company could close its stores, including the one in Carson Mall, by July 15.

The consortium of buyers includes liquidation specialists SB Capital Group LLC of New York, Tiger Capital Group LLC of Boston, Great American Group LLC of Los Angeles and Hudson Capital Partners LLC of Massachusetts.

A report from the Sacramento Bee explained that the lead bidder has the inside track to buy the company, and that any entity wishing to continue Gottschalks as a retail operation would have to pay the liquidators $995,000, in addition to submitting a winning bid.

Unless a better bid comes in by March 30, liquidation sales will proceed at Gottschalk's stores, according to an Associated Press report.

The Carson City Gottschalks is the company's only store in Nevada.

Kevin Ray, the local property manager for Carson Mall, said the mall's owner, Carrington Company, is prepared for either outcome.

"We are sitting pretty good," Ray said. "We have a few options if something does happen with Gottschalks. Either way, it's going to work for us."

Ray said that because Gottschalks is a high-producing store, it creates an opportunity to lure another company such as Kohl's to replace it.

"We are going to sit tight and see what happens with Gottschalks, and then we'll move forward with some pretty exciting stuff," Ray said.

"Just as the mall is again becoming viable, it is a blow that this anchor store might be departing," said Ronni Hannaman, executive director of the Carson City Chamber of Commerce. "Gottschalks has been a staple in our community for quite a long time and has served our community well."

Hannaman said she hopes the space will not stay empty for long, and that the Carrington Company can attract another viable department store.

Representatives of Gottchalks could not be reached for comment.

- Contact reporter Kirk Caraway at kcaraway@nevadaappeal.com or 775-881-1261. Associated Press contributed to this report.