Bankruptcy Judge Approves Gottschalks Loan

January 16, 2009 12:00:00 AM PST
A U.S. bankruptcy judge has approved Gottschalks' $125-million dollar loan while the company attempts to re-organize.Top officials with Gottschalks began chapter eleven bankruptcy proceedings Thursday. A court must approve every expenditure and making payroll is a priority.

The court authorized Gottschalks to continue accepting returns and exchanges. Also, some $6-million dollars in gift cards are still out there in the hands of anxious customers.

"I gave out gift cards for Christmas. I told them use them right now. Go use them," said Jan Mackey of Oakhurst.

"I have family, friends and associates who come here and shop here and work here. Where are they going to go for jobs?" asked Irma Soltero-Sparks of Fresno

The company remains hopeful it can find a buyer. Gottschalks will go on the auction block in March.

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