Company Expects to Record Pre-Tax Gain of Approximately $8.7 Million FRESNO, Calif., Sept. 8
FRESNO, Calif., Sept. 8 /PRNewswire-FirstCall/ -- Gottschalks Inc.
(NYSE: GOT) today announced that the Company completed the sale of its
wholly-owned store in the Antelope Valley Mall in Palmdale, California, to
Forest City Enterprises, the owner of the shopping center on September 5,
2008. Gottschalks plans to use proceeds from the $12 million sale of the
Palmdale store to pay down debt and increase availability in the Company's
credit facility. The Company expects to record a pre-tax gain of
approximately $8.7 million in the third quarter of 2008 as a result of the
sale.
Jim Famalette, Chairman and Chief Executive Officer of Gottschalks,
stated, "We are pleased to have completed the sale of one of two stores we
operate in Palmdale. We continue to focus on better managing our real estate
to maximize shareholder value. This transaction allows us to streamline our
operations while also reducing our debt."
As previously announced, Gottschalks expects to close its
105,000-square-foot wholly-owned store and consolidate its two stores into its
second 92,000-square-foot location in the first half of 2009. During the
transition period, the Company will lease both stores.
About Gottschalks
Gottschalks is a regional department store chain, currently operating 58
department stores and three specialty apparel stores in six western states,
including California (38), Washington (7), Alaska (5), Oregon (4), Nevada (2),
and Idaho (2). Gottschalks offers better to moderate brand-name fashion
apparel, cosmetics, shoes, accessories and home merchandise. Gottschalks
offers corporate information and selected merchandise on its website located
at http://www.gottschalks.com.
SOURCE Gottschalks Inc.
