Gottschalks Goes Chapter 11

Fresno-based Gottschalks Department Stores filed for Chapter 11 bankruptcy today.

Beleaguered by a weak Holiday shopping season and the continuing credit crunch, the 104 year old dry good retailer who employs over 5,300 workers at 58 stores said in it's filing that it will seek a buyer. The company said it will continue to operate normally during the bankruptcy proceedings.

In addition to the Elk Grove store, Gottschalks operates three stores in the greater Sacramento area. The company did not say whether or not it will be closing any stores.

Late last year Mervyn's closed it's Elk Grove store following it's liquidation. Like Gottschalks, Meryvn's initially had filed a Chapter 11 bankruptcy.