Bankruptcy

Discount Clothing Chain Goody's Family Clothing Files Chapter 11 - Will Close Nine Georgia Stores

By Scott Riddle

From the Atlanta Business Chronicle -

Discount clothing retailer Goody's Family Clothing Inc. has filed for Chapter 11 bankruptcy protection blaming pressures from tightening credit markets, strain on merchandise flow and dozens of underperforming stores in the chain.

Knoxville, Tenn.-based Goody's said it will close 69 underperforming stores, consolidate distribution centers by closing one facility in Russellville, Ark., which will shrink expenses.

Goody's has 17 stores in Georgia, but will close stores in Kennesaw, Conyers, Newnan, Austell, Cumming, Gainesville, Hiram, Tucker and South Augusta.

The Chapter 11 cases (including 19 related cases)  was filed in the District of Delaware.  The New York Post also has an article about the filing.

Full post as published by Georgia Bankruptcy Blog on June 10, 2008 (boomark / email).