UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
SCHEDULE 13G
Under the Securities Exchange Act of 1934
(Amendment No. )*
Gottschalks Inc.
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(Name of Issuer)
Common Stock, $0.01 par value
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(Title of Class of Securities)
383485109
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(CUSIP Number)
November 22, 2006
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(Date of Event Which Requires Filing of this Statement)
Check the appropriate box to designate the rule pursuant to which this
Schedule is filed:
[_] Rule 13d-1(b)
[x] Rule 13d-1(c)
[_] Rule 13d-1(d)
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* The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which
would alter the disclosures provided in a prior cover page.
The information required in the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 ("Act") or otherwise subject to the liabilities of that section of
the Act but shall be subject to all other provisions of the Act (however,
see the Notes).
CUSIP No. 383485109
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1. NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Defiance Asset Management Fund, LP
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [_]
(b) [X]
3. SEC USE ONLY
4. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
5. SOLE VOTING POWER
0
6. SHARED VOTING POWER
781,509
7. SOLE DISPOSITIVE POWER
0
8. SHARED DISPOSITIVE POWER
781,509
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
781,509
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES (SEE INSTRUCTIONS)
[_]
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
5.83%
12. TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
PN
CUSIP No. 383485109
---------------------
1. NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Defiance Asset Management GP, L.P.
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [_]
(b) [X]
3. SEC USE ONLY
4. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
5. SOLE VOTING POWER
0
6. SHARED VOTING POWER
781,509
7. SOLE DISPOSITIVE POWER
0
8. SHARED DISPOSITIVE POWER
781,509
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
781,509
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES (SEE INSTRUCTIONS)
[_]
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
5.83%
12. TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
PN
CUSIP No. 383485109
---------------------
1. NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Defiance Asset Management, LLC
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [_]
(b) [X]
3. SEC USE ONLY
4. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
5. SOLE VOTING POWER
0
6. SHARED VOTING POWER
1,088,200
7. SOLE DISPOSITIVE POWER
0
8. SHARED DISPOSITIVE POWER
1,088,200
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,088,200
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES (SEE INSTRUCTIONS)
[_]
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
8.11%
12. TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IA; OO
CUSIP No. 383485109
---------------------
1. NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Robert J. Marcin
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [_]
(b) [X]
3. SEC USE ONLY
4. CITIZENSHIP OR PLACE OF ORGANIZATION
United States
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
5. SOLE VOTING POWER
0
6. SHARED VOTING POWER
1,088,200
7. SOLE DISPOSITIVE POWER
0
8. SHARED DISPOSITIVE POWER
1,088,200
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,088,200
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES (SEE INSTRUCTIONS)
[_]
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
8.11%
12. TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
CUSIP No. 383485109
---------------------
1. NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Steve Epstein
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [_]
(b) [X]
3. SEC USE ONLY
4. CITIZENSHIP OR PLACE OF ORGANIZATION
United States
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
5. SOLE VOTING POWER
0
6. SHARED VOTING POWER
1,088,200
7. SOLE DISPOSITIVE POWER
0
8. SHARED DISPOSITIVE POWER
1,088,200
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,088,200
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
SHARES (SEE INSTRUCTIONS)
[_]
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
8.11%
12. TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
CUSIP No. 383485109
---------------------
Item 1(a). Name of Issuer:
Gottschalks Inc.
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(b). Address of Issuer's Principal Executive Offices:
7 River Park Place East
Fresno, California 93720
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Item 2(a). Name, Principal Business Address, and Citizenship of Persons Filing:
Defiance Asset Management Fund, LP - Delaware
Defiance Asset Management GP, L.P. - Delaware
Defiance Asset Management, LLC - Delaware
Robert J. Marcin - United States
Steve Epstein - United States
100 Front Street
Suite 920
West Conshohocken, PA 19428
United States of America
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(d). Title of Class of Securities:
Common Stock, $0.01 par value
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(e). CUSIP Number:
383485109
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Item 3. If This Statement is filed pursuant to ss.240.13d-1(b) or
240.13d-2(b), or (c), check whether the person filing is a:
(a) [_] Broker or dealer registered under Section 15 of the Exchange Act
(15 U.S.C. 78c).
(b) [_] Bank as defined in Section 3(a)(6) of the Exchange Act (15
U.S.C. 78c).
(c) [_] Insurance company as defined in Section 3(a)(19) of the Exchange
Act (15 U.S.C. 78c).
(d) [_] Investment company registered under Section 8 of the Investment
Company Act of 1940 (15 U.S.C. 80a-8).
(e) [_] An investment adviser in accordance with
s.240.13d-1(b)(1)(ii)(E);
(f) [_] An employee benefit plan or endowment fund in accordance with
s.240.13d-1(b)(1)(ii)(F);
(g) [_] A parent holding company or control person in accordance with
Rule 13d-1(b)(1)(ii)(G);
(h) [_] A savings association as defined in Section 3(b) of the Federal
Deposit Insurance Act (12 U.S.C.1813);
(i) [_] A church plan that is excluded from the definition of an
investment company under Section 3(c)(14) of the Investment
Company Act of 1940 (15 U.S.C. 80a-3);
(j) [_] Group, in accordance with s.240.13d-1(b)(1)(ii)(J).
Item 4. Ownership.
Provide the following information regarding the aggregate number and
percentage of the class of securities of the issuer identified in Item 1.
(a) Amount beneficially owned:
Defiance Asset Management Fund, LP - 781,509
Defiance Asset Management GP, L.P. - 781,509
Defiance Asset Management, LLC - 1,088,200
Robert J. Marcin - 1,088,200
Steve Epstein - 1,088,200
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(b) Percent of class:
Defiance Asset Management Fund, LP - 5.83%
Defiance Asset Management GP, L.P. - 5.83%
Defiance Asset Management, LLC - 8.11%
Robert J. Marcin - 8.11%
Steve Epstein - 8.11%
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(c) Number of shares as to which the person has:
(i) Sole power to vote or to direct the vote:
Defiance Asset Management Fund, LP - 0
Defiance Asset Management GP, L.P. - 0
Defiance Asset Management, LLC - 0
Robert J. Marcin - 0
Steve Epstein - 0
(ii) Shared power to vote or to direct the vote:
Defiance Asset Management Fund, LP - 781,509
Defiance Asset Management GP, L.P. -- 781,509
Defiance Asset Management, LLC - 1,088,200
Robert J. Marcin - 1,088,200
Steve Epstein - 1,088,200
(iii) Sole power to dispose or to direct the disposition of:
Defiance Asset Management Fund, LP - 0
Defiance Asset Management GP, L.P. -- 0
Defiance Asset Management, LLC - 0
Robert J. Marcin - 0
Steve Epstein - 0
(iv) Shared power to dispose or to direct the disposition of:
Defiance Asset Management Fund, LP - 781,509
Defiance Asset Management GP, L.P. -- 781,509
Defiance Asset Management, LLC - 1,088,200
Robert J. Marcin - 1,088,200
Steve Epstein - 1,088,200
Item 5. Ownership of Five Percent or Less of a Class.
If this statement is being filed to report the fact that as of the date
hereof the reporting person has ceased to be the beneficial owner of more than
five percent of the class of securities, check the following [ ].
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Item 6. Ownership of More Than Five Percent on Behalf of Another Person.
If any other person is known to have the right to receive or the power to
direct the receipt of dividends from, or the proceeds from the sale of, such
securities, a statement to that effect should be included in response to this
item and, if such interest relates to more than five percent of the class, such
person should be identified. A listing of the shareholders of an investment
company registered under the Investment Company Act of 1940 or the beneficiaries
of employee benefit plan, pension fund or endowment fund is not required.
N/A
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Item 7. Identification and Classification of the Subsidiary Which Acquired the
Security Being Reported on by the Parent Holding Company or Control
Person.
If a parent holding company or Control person has filed this schedule,
pursuant to Rule 13d-1(b)(1)(ii)(G), so indicate under Item 3(g) and attach an
exhibit stating the identity and the Item 3 classification of the relevant
subsidiary. If a parent holding company or control person has filed this
schedule pursuant to Rule 13d-1(c) or Rule 13d-1(d), attach an exhibit stating
the identification of the relevant subsidiary.
N/A
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Item 8. Identification and Classification of Members of the Group.
If a group has filed this schedule pursuant to s.240.13d-1(b)(1)(ii)(J), so
indicate under Item 3(j) and attach an exhibit stating the identity and Item 3
classification of each member of the group. If a group has filed this schedule
pursuant to s.240.13d-1(c) or s.240.13d-1(d), attach an exhibit stating the
identity of each member of the group.
N/A
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Item 9. Notice of Dissolution of Group.
Notice of dissolution of a group may be furnished as an exhibit stating the
date of the dissolution and that all further filings with respect to
transactions in the security reported on will be filed, if required, by members
of the group, in their individual capacity. See Item 5.
N/A
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Item 10. Certification.
(b) The following certification shall be included if the statement is
filed pursuant to Rule 13d-1(c):
By signing below I certify that, to the best of my knowledge and
belief, the securities referred to above were not acquired and are not
held for the purpose of or with the effect of changing or influencing
the control of the issuer of the securities and were not acquired and
are not held in connection with or as a participant in any transaction
having such purpose or effect.
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
DEFIANCE ASSET MANAGEMENT FUND, LP
By: Defiance Asset Management GP, L.P., its General Partner
By: /s/ Robert J. Marcin
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Robert J. Marcin
DEFIANCE ASSET MANAGEMENT GP, L.P.*
By: /s/ Robert J. Marcin
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Robert J. Marcin
DEFIANCE ASSET MANAGEMENT, LLC*
By: /s/ Robert J. Marcin*
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Robert J. Marcin
/s/ ROBERT J. MARCIN*
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Robert J. Marcin
/s/ STEVE EPSTEIN*
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Steve Epstein
December 1, 2006
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* The Reporting Persons disclaim beneficial ownership in the shares reported
herein except to the extent of their pecuniary interest therein.
Exhibit A
AGREEMENT
The undersigned agree that this Schedule 13G dated December 1, 2006, 2006
relating to the Common Stock, $0.01 par value of Gottschalks Inc. shall be filed
on behalf of the undersigned.
DEFIANCE ASSET MANAGEMENT FUND, LP
By: Defiance Asset Management GP, L.P., its General Partner
By: /s/ Robert J. Marcin
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Robert J. Marcin
DEFIANCE ASSET MANAGEMENT GP, L.P.*
By: /s/ Robert J. Marcin
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Robert J. Marcin
DEFIANCE ASSET MANAGEMENT, LLC*
By: /s/ Robert J. Marcin*
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Robert J. Marcin
/s/ ROBERT J. MARCIN*
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Robert J. Marcin
/s/ STEVE EPSTEIN*
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Steve Epstein
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* The Reporting Persons disclaim beneficial ownership in the shares reported
herein except to the extent of their pecuniary interest therein.
SK 23245 0003 720985