Come mid-January, Gottschalks executives plan to be fully partnered up with a massive Chinese investor, who has agrees to invest up to $30,000,000 to help Gottschalk’s strengthen it’s financial position.

For more than three years, Gottschalks and china based, Everbright Development Overseas Ltd. has been working on a deal that would bring the two companies together.

Now, that deal is finally coming to fruition.

Over the last year, Gottschalks has experienced a significant decline in sales, down nearly $380,000,000 since the beginning of the 2008 fiscal year.

Ambro says, with this new partnership, business should get much better, while allowing the company to do more sourcing overseas directly, instead of through various intermediaries.

In a news release, Everbright stated it looks forward to helping Gottschalks achieve its future growth plans, by helping strengthen Gottschalk’s financial position, by acquiring $15,000,000 of newly-issued shares of Gottschalks common stock, and by either making a $15,000,000 capital contribution or a $15,000,000 loan that will be used to help fund Gottschalk’s credit facility.

Gottschalk’s executives say they don't expect the partnership will affect heir customers, but some shoppers we caught up with today weren't so sure.

Gottschalk’s also says this partnership with Everbright will also allow for better price points in Gottschalk’s stores and allow Gottschalk’s to greatly expand it’s electronics departments, just in time for the digital transition, which is just 88 days away.

For Preston Phillips’ full story, click on the video link above.