FRESNO, Calif. " Gottschalks says it won't be able to avoid liquidation and will sell merchandise and other items at its retail stores and distribution center.
The retailer, which sought Chapter 11 bankruptcy protection in January, had hoped to possibly sidestep the action after talking to the Shandong Commercial Group General Corp., a Chinese government-owned conglomerate, about a potential buyout.
Chief Executive Jim Famalette says that despite Gottschalks' efforts at earnest negotiations, the retailer was unable to reach an agreement with creditors, lenders and bidders.
The proposed liquidation still needs approval from the Bankruptcy Court for the District of Delaware, which will hear the case Wednesday.
The Fresno Bee is reporting that liquidators won the battle for Gottschalks Inc. on Monday and will shut down the company, according to CEO James Famalette late Monday.
"It's very difficult to talk right now," Famalette said to the Fresno Bee, his voice shaking, a little more than an hour after the auction ended in Delaware.
He said Gottschalks would begin notifying employees today about what will happen.
Going-out-of-business sales could begin as early as this week.
The 59-store chain's only Nevada location is in Carson City, anchoring the Carson Mall.
If the liquidation plan is approved by the U.S. Bankruptcy Court in Delaware Wednesday, the liquidation could start as soon as Thursday, according to the Dow Jones newswire. It is expected to be completed by mid-July.