CHICAGO (AP) — Discount clothing chain Goody's Family Clothing will begin liquidating its stores on Friday as the retailer becomes one of the year's first victims of the worsening economy.
Cooley Godward Kronish LLP partner Cathy Hershcopf says the move affects the Knoxville, Tenn.-based chain's 287 stores scattered throughout 20 Midwestern and Southern states. It comes less than four months after the privately held retailer emerged from Chapter 11 bankruptcy protection.
The firm is working with Goody's vendors and its parent, PGDYS Lending LLC.
It's uncertain what will happen to the company's 9,800 workers after the liquidation is completed by the end of March. But without a last minute buyer or an investor to purchase high-performing stores, their job outlook is grim.
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