PORT ANGELES — The last of Gottschalks’ merchandise will be up for grabs at its Port Angeles store on Friday as the department-store chain begins its company-wide liquidation sale.
The announcement of the sale, which will end by July 15, came after a Delaware bankruptcy judge approved the liquidation of Gottschalks Inc. on Wednesday.
Ken Porter, store manager, said on Wednesday that he had not received any details on liquidation pricing.
He also said he did not know how many of the store’s 30-or-so employees will remain during liquidation.
Porter recommends that customers use their gift cards before Friday, because they may not be accepted by the liquidators.
“They aren’t Gottschalks. The same rules don’t apply,” he said.
The liquidators also will have control over prices, so it is possible — although not certain — that prices will be increased before they are discounted at the 34,900-square-foot Port Angeles store, located at 200 W. First St., Porter said.
Porter said current sales and discounts will be in place until Friday.
He said he has noticed an increase in customers this week after people became aware of the impending liquidation.
The consortium of liquidators — made up of SB Capital Group of New York, Tiger Capital Group of Boston, Great American Group of Los Angeles and Hudson Capital Partners of Massachusetts — purchased Gottschalks, which includes the Port Angeles store, at an auction on Monday.
Gottschalks, which is headquartered in Fresno, Calif., filed for Chapter 11 bankruptcy in mid-January.
Still hopeful for sale
While Gottschalks is moving forward with liquidating its inventory, fixtures and equipment, the company is still hopeful that it can sell its remaining assets to a Chinese company, Shandong Commercial Group, according to TheFresno Bee.
Porter said three Shandong representatives toured the Port Angeles store on March 21. The representatives also toured several other locations in Washington state, Oregon and California.
The company, which was founded in Fresno in 1904, operates 58 department stores and three speciality stores in California, Oregon, Washington, Alaska, Idaho and Nevada. It employs about 5,200 people.
Porter said he didn’t ask the three Shandong representatives if they plan to reopen the Port Angeles store if Gottschalks is acquired.
“They were interested in finding out our market and the type of products that we sold,” he said.
Porter said Shandong may have been interested in visiting the store because it is one of the most successful Gottschalks locations.
“We are one of the smaller locations in square footage . . . but we are one of the regional leaders in cosmetics, home products,” he said.
“This one has always been an achiever.”
Porter said he has not been contacted by Shandong since the meeting, and the representatives made no indication of what they would like to do with Gottschalks.
City finances
Closure of Gottschalks will affect the city of Port Angeles’ finances, mainly sales tax revenue, which is already below projections for this year, said Yvonne Ziomkowski, city finance director.
Although the numbers haven’t been determined, the city will have to reevaluate its projections for sales-tax and utility-tax revenue for this year, Ziomkowski said.
“It will probably count for less revenue than expected,” she said.
“Our only option is to bring another business to the city.”
Ziomkwoski said the city budgeted for a projected 10 percent drop in sales tax revenue for 2009, “but the first three months are a little more than that.”
She said the city in March, for example, saw a decrease in sales tax revenue of 13 percent when compared with March 2008.
Ziomkowksi said she hopes that the opening of The Gateway transit center — the date of which has yet to be determined — will bring more people downtown and contribute to additional sales-tax revenue, but she isn’t too hopeful that the city will be able to make up a loss of revenue from Gottschalks.
“We have to believe that something will come around and be positive,” she said.
“Right now, I don’t personally have much to glow about with the Hood Canal Bridge closure,” which is planned for six weeks beginning May 1.
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Reporter Tom Callis can be reached at 360-417-3532 or at tom.callis@peninsuladailynews.com.
