Forever 21 bids for 16 Gottschalks stores

Fresno, Calif. Forever 21 has submitted a bid to take over 16 shuttered Gottschalks stores.

The fast-fashion retailer asked a bankruptcy court to buy three Gottschalks stores and take over the leases of 13 others, according to court documents. Gottschalks, which is currently undergoing bankruptcy liquidation at its 58 stores, supports Forever 21's $17.7 million bid for the 16 locations. The bid is part of Forever 21’s plan to continue the store expansion it began since buying 15 bankrupt Mervyns stores in January.

If approved by a bankruptcy judge, the move would buoy cities that have been worried about the loss in sales tax revenue from Gottschalks' demise.