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Gottschalks Out, Macy’s & Forever 21 In

(Filed Under Fashion News). As of the end of July, all of Gottschalk’s 58 mid-tier department stores had closed their doors after holding massive liquidation sales.

The 105-year-old retailer, which opened in Fresno, Calif. in 1904, filed for chapter 11-bankruptcy protection in January of this year in hopes of managing its debt or finding a buyer for the store. After failing to do so, the company shut down its Fresno corporate headquarters in late March, resulting in approximately 300 people losing their jobs. Gottschalks stores were scattered throughout California; Alaska; Washington; Idaho; Oregon; and Nevada.

In the wake of the closing, some companies are jumping on the vacant retail space. Forever 21 purchased three of the spaces in California formally occupied by Gottschalks, and in mid-July, opened up a 150,000-square-foot space in the Hanford Mall in Fresno. The company also opened a location in San Luis Obispo in early August, and will open its third location in Yuba City by the end of this summer.

Macy’s will also be opening two California locations in spaces formally occupied by Gottschalk’s; one in Fresno at 107,000-square-feet, and the second in Visalia at 150,000-square-feet. The company plans to open both this fall in time for the holiday season.

more Fashion News >>

Published 08-12-2009 by Amanda Torres Price

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