January 14, 2009
Beauty News: Goodys, Gottschalks File Chapter 11
From WWD:
Goody’s and Gottschalks are the latest victims of the retail slowdown, with each one filing a Chapter 11 bankruptcy petition.
Goody’s, which exited Chapter 11 in October 2008, said it will liquidate all 282 stores. Gottschalks said it will continue to pursue the option of a sale of its business or other transaction with third-party investors.
Rumblings swirled in December that Goody’s was pressured, and then similarly hit Gottschalks when a proposed deal with Everbright fell through.
Many distressed retailers are getting hurt by a lack of liquidity due to the credit crisis and the lack of apparel spending by consumers.
Gordon Brothers Retail Partners and Hilco Merchant Resources will conduct goiing-out-of-business sales at Goody’s.
Meanwhile, Gottschalks has received a $125 million debtor-in-possession financing package from a group of lenders led by GE Capital.
My roommie works at Circuit City and if they don’t find a buyer by 1/16/09 they are liquidating. This recession is going to have some really bad consequences that we’ll be fixing for the next decade. Luckily I haven’t been hit to personally since I don’t have stocks and I’m in a pretty secure job field (customer service).
Comment by Jaime — January 14, 2009 @ 2:45 pm