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.