CHICAGO (Reuters) - Regional department store chain Gottschalks Inc said on Wednesday that it had filed to reorganize under bankruptcy protection, becoming the latest retailer to seek to restructure amid the recession.
The Fresno, California-based company said it had negotiated $125 million in debtor-in-possession financing from a group of lenders led by GE Capital, a unit of General Electric Co.
Gottschalks plans to pursue options that include the possible sale of the company or another transaction, it said.
The company will conduct business as usual during the process, its chief executive said in a statement.
Gottschalks’ principal bankruptcy attorneys are O‘Melveny & Myers LLP and Richards, Layton & Finger, and its financial adviser is FTI Consulting. Its investment bank is Financo, and its claims agent is Kurtzman Carson Consultants.
Reporting by Brad Dorfman; Editing by Lisa Von Ahn