Gottschalks to Buy Harris Department Stores

Gottschalks Inc. said it agreed to buy the assets of Harris Co., including nine Southern California department stores, for about $39.8 million plus the assumption of debt. Fresno-based Gottschalks agreed to give El Corte Ingles, Harris’ Spanish parent, 2.1 million shares of Gottschalks stock, worth about $17.6 million, and a $22.2 million note due in 2003. The company would also assume an unspecified amount of debt. The transaction is expected to close by August. The deal would give Gottschalks a total of 13 stores in Southern California. The company already has 37 Gottschalks department stores and 22 Village East specialty stores in Nevada, Oregon and Washington. Gottschalks shares rose 6 cents to $8.44 on the New York Stock Exchange.