UPDATE 1-Gottschalks says gets more time to hold auction

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NEW YORK, March 3 (Reuters) - Bankrupt U.S. retailer Gottschalks Inc (GOTTQ.PK) said on Tuesday it received court approval to extend its auction date until the end of March to allow for further negotiations with potential buyers.

The company said it was continuing to negotiate with several potential buyers about a sale to keep the company operating as a "going concern." It can extend its auction date until March 30, 2009, it said.

Fresno, California-based Gottschalks, a regional department store chain, filed for bankruptcy protection in January after a failed deal with Everbright Development Overseas Ltd to invest up to $30 million in exchange for a stake in the company.

The case is In re: Gottschalks Inc, U.S. Bankruptcy Court, District of Delaware, No. 09-10157. (Reporting by Emily Chasan)