Gottschalks Expands Chain

Gottschalks Inc. (Fresno, Calif.) announced today that it has opened 27 of the 34 stores it acquired from Lamonts earlier this summer. The stores are located in the states of Washington (19), Idaho (five), Oregon (two) and Utah (one). The remaining seven stores, all located in Alaska, will open September 7.

Gottschalks is a regional department store chain, currently operating 70 department stores and 19 specialty apparel stores in California, Washington, Idaho, Oregon, Nevada and Utah. It offers better to moderate brand-name fashion apparel, cosmetics, shoes, accessories and home merchandise in its stores, and selected merchandise at http://www.gottschalks.com.

Lamonts Apparel Inc. (Kirkland, Wash.) was a financially troubled retailer of 38 stores in five Northwestern that was having financial and cash flow problems before being acquired by Gottschalks. It has previously emerged from Chapter 11 bankruptcy protection, in February 1998, after a three-year reorganization, with $42 million worth of loans and credit it received under existing agreements with BankBoston N.A., according to press reports.

However, since leaving the cover of bankruptcy, Lamonts continued to have problems, reporting a loss of $1.5 million for the second quarter ending July 31, 1999. In October 1999, Lamonts said it received new and extended credit allowing it at that time to meet most of its seasonal inventory requirements through 2001.