PORT ANGELES — Facing bankruptcy and possible liquidation, Gottschalks Inc. has put 69 of its retail stores on the market, including the department store in downtown Port Angeles.
The Port Angeles Gottschalks, at 200 W. First St., is listed for rent by DJM Realty of New York. The asking price is $3.64 per square foot.
Citing losses and declining revenue, the 105-year-old Fresno-based retailer filed for bankruptcy on Jan. 14.
Would-be buyers must submit proposals by today. If no bids are received, the company will go up for auction on Monday.
“We’ve read a lot and heard a lot, and we’ve certainly had some concerns that it might happen,” Port Angeles City Manager Kent Myers said Tuesday.
“Gottschalks will have a major impact on our community if it closes.”
Formulate a plan
Myers sits on the board of K.O. Erickson Trust, which owns the 34,900-square-foot building in Port Angeles.
If the store closes, Myers said the board will formulate a plan to lease the building to other users during its next meeting on April 14.
Two weeks ago, the board of K.O. Erickson Trust discussed bringing such business experts as Clallam County Economic Development Council Executive Director Linda Rotmark to the meetings.
“In case Gottschalks goes out of business, we want to have a marketing plan in place,” Myers said.
DMJ, the New York-based real estate company representing Gottschalks, released a packet on Monday detailing its 63 leases and six properties for sale in six states, the Sacramento Business Journal reported.
The building in Port Angeles is leased. DMJ seeks a sublease for the property.
Gottschalks employs about 5,200 workers nationwide.
Pat Hyden, secretary and treasurer of Erickson Trust, was surprised to hear of the listing on DJM Realty.
“Gottschalks leases the building from us,” she said. “They don’t own it.”
Hyden declined to speculate on the fate on the business. The trust will have a better idea after the Monday’s auction date, she said.
“At this point, we don’t have a definite plan,” Hyden said of the possible closure of Gottschalks.
If Gottschalks closes, Hyden said, she would prefer the building is used by a local business.
“We’ll be looking for another retailer or store, or something of that nature, to go into that space, make it something very viable for Port Angeles,” Hyden said.
“That’s our goal.”
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Reporter Rob Ollikainen can be reached at 360-417-3537 or at rob.ollikainen@peninsuladailynews.com.
