Chinese invest $30 billion in California-based retailer
Gottschalks, a Fresno, Calif.-based department store chain, announced Friday that a Chinese company has agreed to invest $30 million.
Gottschalks and Everbright Development Overseas Ltd. also will team up to establish direct sourcing and consignment product sales at Gottschalks and launch a new wholesale business.
According to a news release, Everbright's investment will include a $15 million acquisition of newly-issued shares of Gottschalks common stock.
Gottschalks and Everbright had been working on a deal since late September.
Earlier this month, Gottschalks reported a 13.4 percent decline in sales in October from the same period a year earlier. For the 2008 fiscal year that began in February, total sales were $378 million, down 10.9% from 2007. The last time Gottschalks registered a monthly sales gain over the previous year was March 2007.
Gottschalks operates 59 stores in California, Oregon, Washington, Alaska, Nevada and Idaho, as well as three specialty apparel stores.
Read the full story at fresnobee.com.
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