Looks like Gottschalks is safe, at leat for now, due to a $125 million debtor-in-possession credit agreement (Johnson, 2009). The additional money will allow Gottschalks to continue operations during its reorganization process.
What we expect is store closures to boost Gottshalks' balance sheet. The real question is, which ones? Smaller stores are likely targets; even if profitable. Revenues from smaller stores typically aren't enough to keep a company Gottschalks' size afloat.
Stay tuned for more Gottschalks' information as it becomes available.
Johnson, K. (2009). Gottschalks gets court's OK on $125M credit line. Sacramento Business Journal. Retrieved from http://sacramento.bizjournals.com/sacramento/stories/2009/02/16/daily68.html?ana=e_du_pub