Everbright Pulls Out of $30 Million Gottschalks Deal
January 12, 2009-- Home Textiles Today,
Regional department store chain Gottschalks said the $30 million investment agreement in the company by Everbright Development Overseas Securities Ltd. has been terminated.
In an 8-K filed with the Securities and Exchange Commission, Gottschalks said, "Everbright exercised its right to terminate the Investment Agreement pursuant to a limited due diligence review period," following the Nov. 21 finalization of the terms of the deal.
The agreement would have set up exclusive direct sourcing and wholesale structures between the struggling West Coast retailer and Everbright. Under the terms of the cash and warrants agreement, it also would have delivered the controlling interest in Gottschalks to Everbright, which is based in the British Virgin Islands and has a network of facilities in Asia.
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