Goody’s Emerges from Bankruptcy

Goody’s Family Clothing Inc. (Knoxville, Tenn.) has emerged from Chapter 11 bankruptcy, effective Oct. 21, 2008.

The moderately-priced family apparel retailer said during the bankruptcy – which it declared on June 9, 2008 – it “streamlined and reorganized its operations to improve the business model, significantly reduced operating costs and maximized the value of core assets.” That included the closure and liquidation of 69 stores in 18 states, the closing of a distribution center in Arkansas and a corporate office in New York, as well as the elimination of what it called “excessive corporate spending.” The retailer also eliminated its e-commerce business. At its peak, the privately held company operated close to 300 stores.

In conjunction with the plan, Goody’s successfully closed a $175 million revolving exit credit facility provided by GE Corporate Lending and Bank of America, N.A., and secured $10 million and $35 million exit term loans from GB Merchant Partners, LLC and PGDYS Lending LLC, respectively.

“We believe we have significantly strengthened both our business and capital structure and this will allow Goody’s to continue to build on its 55-year heritage,” said ceo Paul White.