Gottschalks to explore sale or merger options
November 3, 2006-- Home Textiles Today,
Fresno , Calif. – Western regional department store chain Gottschalks said today its board of directors has formed a special strategic committee to “identify and evaluate various strategic alternatives to maximize shareholder value.”
The retailer listed alternatives: “ a revised business plan, operating partnerships, joint ventures, strategic alliances, share repurchases, a recapitalization, and the sale or merger of the company.”
Wall Street reacted favorably to the news; shares of the retailer traded briskly and were up nearly 12% in the morning, cooling to a 7% gain by mid-day.
Home textiles has not been a recent strong point at the 66-store chain; just yesterday in discussing October and third quarter sales results, president and ceo Jim Famalette said the home division continues to lag.
Related Content By Author
Industry Related Content
Live from New York Textiles Market: Day 3