Gottschalks, Goody’s Bankrupt on Same Day

In sort of a sick coincidence, two retailers with names that begin with “G,” regional department-store chain Gottschalks, and clothing seller Goody’s, both filed for bankruptcy protection yesterday. Gottschalks is looking for a buyer, while Goody’s is liquidating.

Neither of their filings are a surprise. This is the second time Goody’s has filed for bankruptcy in the last year, and it has already closed 74 stores, leaving it with 282. Gottschalks has 58 West Coast stores and has been looking for a buyer at least as far back as 2006.

Of course, in a Bloomberg article, there is more good news ahead. Here’s Howard Davidowitz, one of the most colorful analysts out there: “It’s going to get dramatically worse. The consumer’s behavior is changed forever.”

We should probably find out soon how right he is now that the holiday season is over and bankruptcy season gets into full swing.

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8 Responses to “Gottschalks, Goody’s Bankrupt on Same Day”


  1. 1 James January 15, 2009 at 11:20 am

    Apparently Howard Davidowitz and I agree, consumers are learning how little they really have to spend, how little they really need. Every household in the land has a huge inventory of “stuff”, the buying binge is over. I am willing to bet we will see a big increase in garage sales especially as the nicer weather starts.

  2. 2 GisGood January 15, 2009 at 1:14 pm

    “G” is for Good riddance to these bloated retailers and consumer overspending.

  3. 3 MrPotter January 15, 2009 at 3:15 pm

    “G” is for Geee, I wonder who’s next?

  4. 4 kelly p January 16, 2009 at 10:06 pm

    Gircuit City.

  5. 5 iritter January 17, 2009 at 9:37 am

    kelly p-

    Best comment of ’09 so far.

  6. 6 WRandolphHearst January 17, 2009 at 6:55 pm

    Ian,
    You should devote a column to the best comments of 2008!

  7. 7 masterofreality January 19, 2009 at 9:20 am

    Real estate developers must begin to realize that there is an over bloated inventory of retail and office space and that no more is needed for a long time. This is not just a temporary “recession driven” phenomena, but a paradigm shift. Consumers will continue to do more and more e-shopping because of convenience and energy conservation. There will also be more and more e-communting where employees work out of their own home offices while companies realize the savings.

    There is more than enough existing space to handle realistic needs in both these segments for the mid-term.

    It may be time for another line of work, developers.

  8. 8 iritter January 21, 2009 at 7:06 am

    WRandlophHearst-

    I was thinking of doing that, but we had about 800 comments in 2008.

    That would be…challenging.


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