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Retailers, consumers and prices

Check Out Line: Chapter 11, here we come

January 14, 2009

FINANCIAL/TIMES-TOYSTORECheck Out the latest bankruptcies.

Gottschalks filed for Chapter 11 bankruptcy protection on Wednesday after a tough holiday season. The company said it would pursue options including the possible sale of the company.
 
For those of you wondering “Got who?” — Gottschalks is a chain with 61 stores, most of them in California.  Gottschalks said it had negotiated $125 million in debtor-in-possession financing from a group of lenders led by GE Capital.
 
Gottschalks was not alone. Goody’s LLC, a privately held clothing retailer that emerged from bankruptcy in October, filed for Chapter 11 protection again and said it plans to liquidate its remaining 282 stores.
 
Goody’s said it had investigated a number of alternatives, and ultimately concluded that the best way to maximize value for creditors was to conduct an orderly liquidation.

Gottschalks and Goody’s join KB Toys (shown here), Circuit City and other retailers who have filed for bankruptcy protection recently as consumers cut back on purchases amid the recession.
    
Also in the basket:

Retail sales slump, Commerce Department says

U.S. 2009 auto sales seen at 27-year low

Peanut butter being recalled in Salmonella outbreak

(Reuters photo)

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