Gottschalks to extend auction date

FRESNO, Calif. Gottschalks announced that it has received approval from the bankruptcy court to extend its auction date until March 30, to allow for further negotiations related to potential going concern offers. The company remains in active discussions with multiple potential buyers and continues normal business operations in its stores.

Additionally, the court approved the Employee Retention Plan and the Executive Incentive Plan, finding that they were appropriate in assisting the company to achieve its goals.

Jim Famalette, chairman and CEO of Gottschalks, said, "We are pleased the court has extended the auction date, and we continue to negotiate in good faith with potential buyers to keep Gottschalks as a going concern."

Gottschalks filed to reorganize under Chapter 11 on Jan. 14 in the United States Bankruptcy Court for the District of Delaware.