Antioch Mall’s Bankrupt Gottschalks Gets Bought Out By NKT Commercial LLC

Rumors that NKT Commercial LLC was going to buy Antioch’s now bankrupt Gottschalks store in the Antioch mall on Somersvile now appear likely. According to Entrepreneur.com, “Department-store chain Gottschalks Inc. filed for bankruptcy in January. The cash-strapped company filed for Chapter 11 protection and plans to reorganize its operations, but its chief executive confirmed Gottschalks was seeking a court-approved buyer.”

Fastforward 8 months and according to reports that buyer appears to be Developer NKT Commercial.

According to Gottschalks, “While we have aggressively pursued a number of important steps over the past year to improve our performance and reduce costs, the persistent challenges in the economy and recent unexpected reductions to our borrowing capacity as a result of tightening credit markets have left us with no other recourse than to pursue a sale of the company under court approval in a Chapter 11 proceeding, Famalette said. We expect to proceed quickly and hopefully partner with a new owner that will continue to offer branded high-quality merchandise and the special service that we have always provided our customers.” (Sac Biz Journal)

It’s no doubt that NKT Commercial has decided now is a good time to buy commercial property in Antioch. With Antioch commercial vacancy rates an an all time high Antioch has been trying to attract commercial investors.  Although, better Citywide business migration incentive programs may help that effort.  Gottschalks was reported to have been worth $9.5 million in July, 2008. Supposedly NKT Commercial will be bailing Gottschalks out for a mere $1.5 million for the 91,000sq. ft. structure.

NKT Commercial will likely locate several investors who would like to lease space in the Antioch building. No news has emeraged yet as to who NKT has been negotiating with. NKT has a good name in the community and will definitely be an great resource for the Antioch employment market. NKT is a supporter of Jack’s Helping Hand, “Through such projects as the creation of a special needs pediatric physical therapy facility, the purchase of therapeutic equipment for individual children and assistance with travel to distant medical facilities, Jack’s Helping Hand seeks to enhance the physical, emotional and social development of disabled children.” (Jacks Helping Hand)

Grove business analysts believe that this commercial deal is just the beginning of a mass commercial Antioch migration. Commercial buyers will have to be out of their minds not to take advantage of the great Antioch business opportunities right now.