Gottschalks is officially out of business

Gottschalks, the department store chain that was a proud San Joaquin Valley success story for decades, passed quietly into history Sunday as bargain-hunters stripped the walls bare and snapped up $68 dresses for $1 each.

It was a sharp contrast to the September day in 1904 when the business was born. A National Guard band heralded the debut of Gottschalks, which started with one store in downtown Fresno.

It grew into a regional force until becoming victim of an economic maelstrom, restricted credit and changing consumer trends 105 years later. The company filed for bankruptcy in January and was bought by liquidators who started closing all 61 stores across the Western U.S.

The end came Sunday -- at River Park and Fashion Fair in Fresno, Sierra Vista in Clovis and in Visalia -- with people claiming the last of the merchandise, including clothes racks (two for $15) and green binders emblazoned with the Gottschalks name that once contained company training manuals.

For many, it represented a unique opportunity. Dale Feuersinger snatched up two of the few remaining clothes racks at the Fashion Fair store at the request of his wife.

One rack will go in a spare bedroom; the other is earmarked for the garage. He would have bought more, but there weren't many left.

"One woman took 20 of these," said Feuersinger, who is retired. "It's a madhouse in there."

Mary Pasos of Fresno paid $2.50 for an outfit for her granddaughter that normally would have been $25. "Anything you can find, you can take it up and they will sell it to you," she said.

Many Valley residents grew up with the department store. Most longtime residents know of a family member or close friend who worked at one time for Gottschalks -- and its closure evoked many memories.

"A part of my life is gone," said Delores Keswick, 79, of Clovis. Her mother worked in the original store beginning in 1950 and ending 33 years later when she retired. Keswick talked of the loyalty between management and employees, and said that kind of bond doesn't exist much anymore. "All the employees who were my friends felt they were treated especially well."

April Tarango, 31, of Fresno said the closure of Gottschalks is like the loss of a childhood friend.

"Gottschalks has been with me my whole life wherever I lived," she said. "Growing up, it was a place for my mom, my grandmother and I to go shopping together -- our main bonding time."

One memory sticks out more than others. "The big glass domes on the ceilings in some of the locations that would throw your voice if you stood in the right spot," she said. "You could hear another shopper's conversations from across the store."

Longtime Gottschalks employee Jack Moody said the community is losing a large civic contributor. "The Central California Women's Conference ... Toys for Tots, Coats for Kids. Joe [Levy, former chairman] has a big heart," said Moody, 86, who retired as vice president of marketing.

Headquartered in Fresno, the number of corporate employees was down to a handful on Sunday. "At some point, we'll be down to a couple people left to work for the unsecured creditors committee," said Jim Famalette, chief executive officer.

Some store employees could wind up working for Forever 21 or Macy's, which are claiming some of the sites. Macy's is moving into the showcase River Park store, where it already has bought all the furnishings and fixtures from Gottschalks.

Macy's also is moving into the Visalia store.

Forever 21 will take its time remodeling the three-story Fashion Fair store to follow a new prototype and accommodate expanded product lines. That store will open in 2010. Then, Forever 21's existing store in the mall will close.

Meanwhile, Gottschalks is close to selling stores in Eureka and Antioch, Famalette said. The company also has received a $3.2 million offer from Hilco Real Estate LLC for its share of the corporate headquarters building near Woodward Park, according to papers filed in bankruptcy court.

Said Famalette, "It's a sad and tragic end to a wonderful company."

This story was originally published July 13, 2009 at 12:26 PM with the headline "Gottschalks is officially out of business."