Retailer Gottschalks says it put itself up for sale and has filed to reorganize in a Chapter 11 bankruptcy.
The regional department store chain has negotiated a $125 million debtor-in-possession financing from a group of lenders led by GE Capital, it said in a statement Wednesday. The financing, if approved in bankruptcy court, will fund its employee wages and benefits, some vendor payments and other operating expenses while it reorganizes.
"Persistent challenges in the economy and recent unexpected reductions to our borrowing capacity as a result of tightening credit markets have left us with no other recourse," said Jim Famalette, chairman and chief executive, in a statement.
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