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GOTTSCHALKS ANNOUNCES EXTENSION OF BANK FINANCING

 FRESNO, Calif., July 7 /PRNewswire/ -- Gottschalks Inc. (NYSE: GOT) reported today that Wells Fargo Bank, N.T.S.A. has extended the company's current $75 million line of credit through Aug. 31, 1993. The line of credit is secured by a pledge of the company's accounts receivable and personal property, other than inventory. The company has agreed to pledge its inventory as additional security prior to July 30, 1993. The company anticipates finalizing a new one-year agreement with Wells Fargo prior to the expiration of the current 60-day extension. The new agreement will provide for a line of credit covering the company's anticipated cash needs during the period covered. The new line of credit will be secured by a pledge of the company's real and personal property.
 As previously reported, the company is in violation of certain of the loan covenants applicable to approximately $11.0 million in debt of the company held by Teachers Insurance and Annuity Association. Pledge of the company's inventory to Wells Fargo would further breach these loan covenants. The company expects to continue to work with Wells Fargo and Teachers to reach suitable accommodations.
 Gottschalks is a regional department store chain, currently operating 26 department stores and 23 specialty apparel stores in California; Tacoma, Wash.; and Klamath Falls, Ore. Gottschalks offers moderate- to upper-moderately priced brand-name fashion merchandise.
 -0- 7/7/93
 /CONTACT: Alan A. Weinstein, senior vice president and chief financial officer of Gottschalks, 209-434-8000/
 (GOT)


CO: Gottschalks Inc. ST: California IN: REA SU: FNC

LH-TM -- SF008 -- 5916 07/07/93 15:50 EDT
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Publication:PR Newswire
Date:Jul 7, 1993
Words:260
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