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.