On April 27, 2010, mid-level department store chain Gottschalks announced it would be reopening two new stores in Central California in the fall of 2010. This news came as a shock to many residents in the area, since Gottschalks had effectively closed its doors in July 2009 after failing to reorganize its outstanding debt under Chapter 11 bankruptcy. All 58 stores were liquidated and closed, indicating that company was done for good. However, the liquidation process actually put the company in a better position to start anew.
The new chain, possibly named Gottschalks by Joe Levy, Inc., will stay true to their customer base as an independent department store chain catering to moms, students and other buyers with mid-level income. Gottschalks will re-vamp its design to offer customers a new, yet familiar experience. Former company chairman Joe Levy said that the Fresno-based chain will stay in the area, cutting the ribbon on their first new store in Clovis on November 1. Stores in Oakhurst and Auburn will likely be reopened soon thereafter.
Bankruptcy May Be Able To Save Your Business
Bankruptcy doesn't have to end your business, it can actually be just the beginning of a new frontier for you. The lesson to be learned from Gottschalks is that if you're considering Chapter 11 bankruptcy, you might be able to save your business as well, or at least reopen another business after a successful liquidation process.
There are certain restrictions you must follow and very strict deadlines that must be met in order to file for commercial bankruptcy in California, though, so it is vital that you have a reliable bankruptcy lawyer on your side. A clever financial consultant can also be an excellent resource for Chapter 11 reorganization.
