Editing Gottschalks

{{Short description|Former American department store chain}}
{{Infobox company
| name = Gottschalks, Inc.
| logo = Gottschalks Department Store Final Logo.png
| logo_size = 200px
| type = [[Public company|Public]]
| foundation = 1904
| fate = Bankruptcy and liquidation sale
| defunct = July 12, 2009
| location = [[Fresno, California]]
| industry = [[Retail]]
| products = Clothing, footwear, beauty products, jewelry, rugs, furniture, bedding, bath,  appliances, and housewares
| homepage = 
}}

'''Gottschalks''' (former [[New York Stock Exchange|NYSE]] ticker symbol '''GOT''') was a middle-tier [[United States|American]] [[department store]] that operated 58 department stores and three specialty apparel stores in six western states ([[California]], [[Washington (state)|Washington]], [[Alaska]], [[Idaho]], [[Oregon]], and [[Nevada]]); some locations ran as Harris-Gottschalks stores. Prior to liquidation, it was the largest independently owned, [[public company|publicly traded]] department store chain in the [[United States]]. On January 14, 2009, Gottschalks filed for [[Chapter 11, Title 11, United States Code|Chapter 11 bankruptcy]].<ref name="Dorfman">{{cite news |first=Brad |last=Dorfman |title=Retailers Gottschalks and Goody's file for bankruptcy |url=https://www.reuters.com/article/businessNews/idUSTRE50D5AC20090114 |work=[[Reuters]] |publisher=[[Thomson Reuters]] |date=14 January 2009 |access-date=14 January 2009 }}</ref><ref>{{cite web|title=Gottschalks Chapter 11 Petition|url=https://www.pacermonitor.com/view/GY7BTPQ/Gottschalks_Inc.__debke-09-10157__0001.0.pdf|website=PacerMonitor|access-date=6 June 2016}}</ref>  This bankruptcy became a liquidation on March 31, 2009.<ref name="bizjournals.com">{{cite news |first=Kelly |last=Johnson |title=Gottschalks makes deal with liquidation bidder |url=http://www.bizjournals.com/sacramento/stories/2009/03/09/daily58.html |work=The Sacramento Business Journal |date=March 13, 2009 |access-date=1 August 2010}}</ref> At least five prime locations became [[Macy's]] stores, while several more became [[Forever 21]] stores.

==Beginnings==

[[File:Gottschalkslogo.PNG|thumb|250px|right|The second Gottschalks logo used until 2001.]]
[[File:Gottschalk's Building Fresno 1914.jpg|thumb|Gottschalk's new, larger store in Fresno, CA, shortly after it opened in 1914]]
Gottschalks was founded by [[German people|German]] Jewish immigrant Emil Gottschalk in 1904 as a [[dry goods]] store in downtown [[Fresno, California]].<ref name="Fresno Bee Gottschalks">{{cite news|url=http://www.fresnobee.com/local/story/1130183.html |title=Gottschalks history |date=January 14, 2009 |work=The Fresno Bee |access-date=2009-01-15 |url-status=dead |archive-url=https://web.archive.org/web/20090125223726/http://www.fresnobee.com/local/story/1130183.html |archive-date=January 25, 2009 }}</ref> Ten years later, the store grew enough to move into another building downtown with ten times the amount of space.<ref name="Fresno Bee Gottschalks" /> Before his passing in 1939, Emil passed control to his brother-in-law, Henry Korn and his nephew, Abe Blum. The company opened its first branch store in [[Merced, California|Merced]] in 1961 and new stores in [[Visalia, California|Visalia]] and [[Fresno, California|Fresno]]. In a strategy to win over teenage [[baby-boomers]], Gottschalks launched Bobbie West, a chain of junior apparel stores, in the late 1960s. Village East shops, which offered plus-sized women's clothing, were launched in 1970.

Irving (Bill) Levy served as the 4th of seven presidents in the 105 years that Gottschalks operated. Upon Irving Levy's death in 1981, his son Joseph Levy became CEO and chairman of the board until James Famalette was elevated to these positions in 1999 and 2007, respectively.

==Becoming successful==

Gottschalks gained success by locating only in smaller cities that could not support full-size national department stores. This tactic kept Gottschalks' overhead low by allowing it to build smaller (80,000- to 110,000-square-foot), single-level stores with lower real estate costs. More often than not, it also made Gottschalks "the only game in town", with virtually no competition from other national department stores.

The chief executives of Gottschalks, Inc. following the death of Emil Gottschalk:
# Henry Korn (brother in law)
# Abe Blum (sole nephew)
# Irving Levy (wife's nephew by marriage)
# Joseph Levy (son of Irving Levy)
# James Famalette (no relation)

Presidents/chief operating officers who served after Irving Levy's death in 1981:
# Gerald Blum (grand nephew and son of Abe Blum)
# Stephen Furst (no relation)
# James Famalette (no relation)

Abe Blum (died 1963) had a degree in electrical engineering from Rutgers University, and was responsible for installing one of Fresno's first air conditioning systems and was among the first retailers in the area to accept bank [[credit card]]s. According to a 1977 ''Chain Store Age Executive'' article, in 1976 Gottschalks became America's first department store to totally automate sales transactions. The company installed electronic [[point of sale]] (POS) "wands" that read bar codes and store credit cards. This technology helped increase efficiency, reduce errors, and keep inventory and customer billing up to date.

==Expansion==

The number of Gottschalks units doubled from nine in 1985 to 18 in 1988 and annual revenues increased from $112 million to $196 million in the process. Part of this growth came via the acquisition of two small family-run department store chains in 1987 and 1988, for a total of $11 million.
[[File:Brock's Department Store Logo.png|thumb|Brock's department store logo]]
'''Brock's (Malcolm Brock and Co.)''' stores and 500 employees were added in [[Bakersfield, California|Bakersfield]], the Downtown flagship and in the [[Valley Plaza Mall]].<ref name="brocks_leask">{{cite news |title=Gottschalks adds new chains |url=https://www.newspapers.com/clip/23678057/santa-maria-times/ |publisher=Santa Maria Times |date=September 15, 1988}}</ref>
[[File:Leask's Department Store CA Logo.png|thumb|Leask's department store logo]]
The acquisition of '''Samuel Leask & Sons''' chains added three stores and 150 employees, in:<ref name="brocks_leask"/>
* [[Santa Cruz, California|Santa Cruz]], {{convert|80000|sqft|sqm}}
* [[Scotts Valley, California|Scotts Valley]] {{convert|11000|sqft|sqm}}
* [[Aptos, California|Aptos]], {{convert|9000|sqft|sqm}}
* a store to be built in the [[Capitola Mall]] in [[Capitola, California|Capitola]]

The chain also refined its specialty store offerings, converting its Bobbie West juniors stores into Petites West boutiques mid-decade in order to attract smaller-sized Asian and Latin women.

The company's stock started trading on the [[New York Stock Exchange]] in 1986 under the symbol GOT.<ref name="Gottschalks About Us">{{cite web |url=http://www.gottschalks.com/CompanyInfo/about.aspx |archive-url=https://archive.today/20040310001748/http://www.gottschalks.com/CompanyInfo/about.aspx |url-status=dead |archive-date=2004-03-10 |title=About Gottschalks |publisher=Gottschalks |access-date=2009-01-15}}</ref> In 1988, the company closed its flagship store in Fresno, California due to unsatisfactory sales.<ref name="FundingUniverse">{{cite web |url=http://www.fundinguniverse.com/company-histories/Gottschalks-Inc-Company-History.html |title=Gottschalks, Inc. |publisher=FundingUniverse |access-date=2009-01-15 |author=<!--Staff writer(s); no by-line.--> |date=<!--undated-->}}</ref>
[[File:Harris-Gottchalks Transition Logo.png|thumb|Harris-Gottschalks logo]]
In 1995, the company went online. In 1996, they opened a {{convert|125000|sqft|sqm|adj=on}} store in the troubled [[Park Lane Mall|Park Lane Centre]] in [[Reno, Nevada]], which had lost its two department store anchors [[Sears]] and [[Weinstock's]] to a larger competitor mall. The company grew in [[Southern California]] with the 1998 acquisition of [[Harris Department Store]]s, which operated as Harris-Gottschalks stores by then. In 2000, the [[Seattle]] based department store [[Lamonts]] was acquired.<ref name="Fresno Bee Gottschalks" />

==Decline after 2000==
Most of the Lamonts locations that were acquired by Gottschalks eventually closed due to poor sales. The exception was the Alaska market, where sales were strong and only one store, [[Wasilla, Alaska|Wasilla]], was closed prior to the company's shutdown. Closures included the locations at the [[Northgate Station (shopping mall)|Northgate Mall]] in Seattle, WA, in September 2006, and in [[Tacoma, Washington|Tacoma]] Highlands on September 22, 2007, a free-standing location unlike the typical mall setting. The Northgate Mall location marked the closing of the last Gottschalks in Seattle. In Washington state, the remaining Gottschalks locations had succeeded in [[rural]] and [[suburban]] areas with less competition from other department stores.

==Bankruptcy and liquidation==
On October 24, 2008, Gottschalks was delisted from the [[New York Stock Exchange]].  NYSE officials stated that the value of the stock was too low to continue to be listed, and that its average global [[market capitalization]] had remained below $25 million for 30 straight trading days.  Company officials claimed to be negotiating a deal for a loan with a Chinese company, Everbright Development Overseas Limited.  They also stated that they would appeal the delisting decision.  On December 18, 2008, Gottschalks officials announced that Everbright had pulled out of the deal.<ref name="Chinese firm drops Gottschalks">{{cite news |url=http://www.modbee.com/1526/story/538429.html |title=Chinese firm drops Gottschalks |last=Sheehan |first=Tim |date=December 19, 2008 |work=The Modesto Bee |access-date=2009-01-15 |archive-url=https://web.archive.org/web/20090722182059/http://www.modbee.com/1526/story/538429.html |archive-date=2009-07-22 |url-status=dead}}</ref>

On January 14, 2009, Gottschalks filed for [[Chapter 11, Title 11, United States Code|Chapter 11 bankruptcy]].<ref name="Dorfman" /> In March 2009, Gottschalks announced it lined up a group of bidders that would liquidate the chain if no other bidder was found by March 30.<ref>{{cite news |url=http://www.visaliatimesdelta.com/article/20090307/NEWS01/903070333/1002 |title=Gottschalks may shut down: Potential buyers could close chain, sell off company's assets |newspaper=Visalia Times-Delta |date=March 7, 2009 |first=David |last=Castellon |archive-url=https://web.archive.org/web/20090312011428/http://visaliatimesdelta.com/article/20090307/NEWS01/903070333/1002 |archive-date=2009-03-12 |url-status=dead}}</ref> On March 31, Gottschalks announced it would liquidate its remaining stores.<ref name="bizjournals.com"/><ref name=lat-2009apr01>{{cite news |url=https://www.latimes.com/archives/la-xpm-2009-apr-01-fi-gottschalks1-story.html |title=Gottschalks is going out of business: The 105-year-old regional department store chain plans to liquidate after failing to successfully reorganize its operations under Chapter 11 bankruptcy. |newspaper=[[Los Angeles Times]] |date=April 1, 2009 |first=Andrea |last=Chang}}</ref> The chain's final stores closed July 12, 2009. Several prime locations became [[Macy's]] or Forever 21.<ref name=fb-2011jan15 />

There were plans by former CEO Joe Levy to reopen some of the stores by early 2011,<ref name=fb-2011jan15>{{cite news |url=http://www.fresnobee.com/news/local/community/clovis-news/article19508820.html |title=Gottschalks still lingers in bankruptcy |newspaper=[[Fresno Bee]] |date=January 15, 2011 |first=Tim |last=Sheehan}}</ref><ref name=dp-2010may03>{{cite news |url=http://www.denverpost.com/ci_15009987 |title=Gottschalks building for sale or lease |newspaper=[[Denver Post]] |date=May 3, 2010 |first=Jondi |last=Gumz |access-date=June 7, 2015 |archive-date=June 7, 2015 |archive-url=https://web.archive.org/web/20150607035829/http://www.denverpost.com/ci_15009987 |url-status=dead }}</ref> but those plans ultimately fell through.<ref name=fb-2014feb11>{{cite news |url=http://www.fresnobee.com/news/business/article19518576.html |title=Former Gottschalks CEO Joe Levy dies at 82 |newspaper=[[Fresno Bee]] |date=February 11, 2014 |author=<!--Staff writer(s); no by-line.-->}}</ref>

==Gallery==
{{gallery |File:GOTTS close1.JPG|Store closing sale at Gottschalks in Capitola, California.
|File:Gottschalks end.jpg|A [[sign spinner]] hired for the closing sale in [[Capitola, California]].
}}

==See also==
* [[Max Gottschalk]] – American artist (1909–2005) <!-- Not clear if he is related to the chain -->

==References==
{{Reflist|2}}

==External links==
* [http://www.kccllc.net/gottschalks Gottschalks, Inc. corporate restructuring overview] — ''at Kurtzman Carson Consultants LLC''.

[[Category:Defunct department stores based in California]]
[[Category:Companies based in Fresno County, California]]
[[Category:History of Fresno, California]]
[[Category:American companies established in 1904]]
[[Category:Retail companies established in 1904]]
[[Category:Retail companies disestablished in 2009]]
[[Category:1904 establishments in California]]
[[Category:2009 disestablishments in California]]
[[Category:Companies that filed for Chapter 11 bankruptcy in 2009]]
[[Category:Companies formerly listed on the New York Stock Exchange]]
[[Category:Defunct companies based in California]]