Goody's is Going Out of Business

Posted by: Madeleine Brooks

Goody’s is a privately owned family apparel store. The company was founded in 1953 in Knoxville, Tennessee. Goody’s is an apparel store that is located in twenty states in the Southeast and Midwest regions of the United States. The economy has deeply impacted Goody’s stores that the company filed for Chapter 11 protection in June 2008 because they were unable to negotiate and pay off their creditors. By October 2008, Goody’s shut down 74 under performing stores and filed once again for Chapter 11 protection. Goody’s officially declared they were going out of business and liquidating the 300 stores that were left. The company had approximately 25,000 to 50,000 creditors and 100 to 500 million dollars in assets and liabilities.

Goody’s planned their reorganization by liquidating and shutting down dozens of under performing stores, closing a distribution center, shutting down a corporate office, cut corporate and operating expenses and stop e-commerce business in another distribution center. Goody’s has 8,200 employees when they petitioned for Chapter 11 bankruptcy. The Christmas and holiday season hurt this family clothing chain that they could not pay off their creditors. The cause of all of this is the downturn of the economy and high unemployment rates that people cannot spend as much as they once were able to. All the business in the retail industry got hit hard during the holidays, it wasn’t just Goody’s. Other large companies such as Circuit City and KB Toys filed for bankruptcy and are going out of business as well. Hopefully the U.S. economy will start to pick up sooner than later.

References:

http://www.reuters.com/article/GCA-Economy/idUSTRE50D4MZ20090114

http://www.grundycountyherald.com/news/view_sections.asp?idcategory=3&idarticle=2617

http://www.tulsaworld.com/news/article.aspx?subjectid=298&articleid=20090122_298_0_TAHLEQ452902