Friday afternoon update: In a statement released Friday afternoon, Gottschalks said it is still in active negotiations with Everbright and another party to structure a deal with Gottschalks.

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A deal between a Chinese company and Fresno-based Gottschalks has fallen through. In a statement filed with the SEC, Gottschalks said that Everbright Development Overseas, Ltd had exercised it's option to back out of a $30 million deal that would have given Everbright control of the department store company. Gottschalks stock fell nearly 65% on Friday, closing at 16 cents a share.
Gottschalks has lost nearly $20 million so far this year and the deal with Everbright was considered a lifeline to keep the company going.
Gottschalks officials, so far, have not said anything more about the collapse of the deal.

Gottschalks' SEC filing:

On December 15, 2008, Everbright Development Overseas Securities Ltd., a British Virgin Islands corporation, terminated an Investment Agreement dated as of November 20, 2008, by and between Gottschalks Inc. and Everbright, as
amended by a side letter thereto, dated as of the date thereof, by and between the Company and Everbright. The Investment
Agreement provided for up to a $30 million investment in the Company by Everbright, as well as a strategic business partnership with
Everbright to establish direct sourcing and consignment product sales by the Company. Under the terms of the Investment Agreement,
the Company would also have received all of the issued and outstanding capital stock, trademarks, patents and licenses of Everbright
Asia Limited, a British Virgin Islands corporation, and would have established a new wholesale business
from which the Company would have received all profits.