Gottschalks Likely to Run Out of Money by the End of the Month
By Ashley Ritchie and Winston Whitehurst
Gurpreet Brar is one shopper trying to keep Gottschalks from going under.
"This is a nice store here, especially for Riverpark and the people who live out here," Brar said.
"They've been a mainstay of the Fresno community and the Central Valley area. It's just really hard to imagine this area without a Gottschalks," Fresno Economist Henry Nishimoto said.
But that reality might not be far off after Gottschalks recently filed paperwork with the Securities and Exchange Commission saying it could run out of money by the end of this month, without some kind of help.
"Unless they can find some investors who are willing to come in and infuse some capitol, working capitol, there are just not a whole lot of options for them," Nishimoto said.
Nishimoto says a failed Gottschalks would have a huge impact right here at home.
"In a word: jobs. Gottschalks employs a lot of people at the retail level and that provides a lot of stimulus for the economy and the Central Valley," he said.
"Eventually if this is running out of money, you start worrying about all the other stores too," Brar said.
For Gupreet Brar, she'll continue shopping here at Gottschalks, hoping to be the difference that keeps it afloat.
Nishimoto says, unless an investor comes in to save Gottschalks, the company will likely file for chapter 11.
As for whether or not more stores are to follow, Nishimoto says it really depends on how successful the stimulus package is and whether banks are able to extend credit again.
Gottschalks had its stock listing pulled from the New York Stock exchange back in October. The company was suspended because its value fell below $25 million.