Gottschalks facts for kids
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| Public | |
| Industry | Retail |
| Fate | Bankruptcy |
| Founded | 1904 |
| Defunct | July 12, 2009 |
| Headquarters | Fresno, California |
| Products | Clothing, footwear, bedding, furniture, jewelry, beauty products, and housewares |
Gottschalks was a well-known American department store chain. It had many stores across six western states, including California, Washington, Alaska, Idaho, Oregon, and Nevada. Before it closed, Gottschalks was the biggest independently owned department store chain in the United States.
Sadly, the company faced financial trouble. On January 14, 2009, Gottschalks had to file for bankruptcy. This meant they needed help to manage their debts. By March 31, 2009, the company decided to close all its stores. Many of its old locations later became Macy's or Forever 21 stores.
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How Gottschalks Started
Gottschalks began in 1904. It was founded by Emil Gottschalk, an immigrant from Germany. He opened a dry goods store in downtown Fresno, California. A dry goods store sells things like fabric, clothing, and household items.
After ten years, the store grew a lot. It moved to a much bigger building. Before Emil passed away in 1939, he gave control of the company to his brother-in-law, Henry Korn, and his nephew, Abe Blum.
In the 1960s, Gottschalks started opening new stores in other cities like Merced and Visalia. To attract young people, they even launched a special chain of stores called Bobbie West. These stores sold junior apparel, which is clothing for teenagers. Later, in 1970, they added Village East shops for plus-sized women's clothing.
Becoming a Successful Store
Gottschalks became very successful by choosing smart locations. They often opened stores in smaller cities where there weren't many big national department stores. This strategy helped them save money on rent and building costs. It also meant that Gottschalks was often the main shopping spot in town, with little competition.
The company was also innovative with technology. In 1976, Gottschalks was one of the first department stores in America to use automated sales. They installed electronic "wands" that could read bar codes on products and store credit cards. This made shopping faster and helped the company keep track of its inventory and customer payments easily.
Growing Bigger
Gottschalks grew quickly in the 1980s. The number of stores doubled from nine in 1985 to 18 in 1988. They also bought two smaller family-owned department store chains.
One of these was Brock's (Malcolm Brock and Co.), which added stores in Bakersfield. The other was Samuel Leask & Sons, adding three stores in places like Santa Cruz.
Gottschalks also changed its special stores. They turned the Bobbie West junior stores into Petites West boutiques. These new stores aimed to attract smaller-sized women, including those of Asian and Latin descent.
In 1986, Gottschalks became a publicly traded company. This meant its stock could be bought and sold on the New York Stock Exchange. However, in 1988, they closed their original flagship store in Fresno because sales weren't good enough.
The company continued to expand. In 1995, Gottschalks launched its own website. They also opened a large store in Reno, Nevada, in 1996. In 1998, they bought Harris Department Stores, which then operated as Harris-Gottschalks. In 2000, they acquired another department store called Lamonts in Seattle.
Challenges and Closing Down
After 2000, Gottschalks started facing more challenges. Many of the Lamonts stores they had bought ended up closing because they weren't making enough sales. The stores in Alaska were an exception, as they continued to do well.
In Washington state, Gottschalks stores in smaller towns and suburban areas did better. This was because there was less competition from other big department stores in those places.
On October 24, 2008, Gottschalks was removed from the New York Stock Exchange. This happened because the value of their stock had become too low. The company tried to get a loan from a Chinese company, but the deal fell through.
Finally, on January 14, 2009, Gottschalks officially filed for bankruptcy. This meant they needed to reorganize their business to pay off debts. However, by March 2009, it was clear that the company would have to close all its remaining stores. The very last Gottschalks stores closed their doors on July 12, 2009.
Images for kids
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Store closing sale at Gottschalks in Capitola, California.
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A sign spinner hired for the closing sale in Capitola, California.
