The auction for the West Coast department store chain Gottschalks reportedly
has drawn the interest of Wal-Mart Stores Inc.,
according to
Women's Wear Daily. The giant retailer is one of two rumored bidders in
the UBS managed auction — the other is Middle Eastern financial firm
Istithmar. Wal-Mart is interested in the 60-store chain for its 38 California
locations, according to WWD, to expand in a state where its plans to build 40
new supercenters have faced considerable resistance from activists and
community groups. However, Gottschalks seems an unlikely target because its
average store size is 90,000 square feet, well below the size of a Wal-Mart
supercenter. After spending considerable time explaining why Wal-Mart wants
Gottschalks, the story concludes that the odds are better that the company
will go to Istithmar or another buyout firm. —Matthew Wurtzel
See story
from Women's Wear Daily
See
Gottschalks profile from Auction Block (subscription required)
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