Headlines

Goody’s to Liquidate

Reorganization efforts ran out of cash and credit; owner Prentice Capital Management also oversaw the demise of KB Toys, Whitehall Jewelers, Steve & Barry’s

Published

15 years ago

January 6, 2009

VMSD Staff

Goody's Family Clothing Inc. (Knoxville, Tenn.) has apparently decided to liquidate the chain early next week, according to various reports.

The moderately priced family apparel retail chain filed for bankruptcy protection in June 2008, saying it had been hurt by high gasoline and food prices that had forced consumers to cut back on nonessential purchases. It reorganized and emerged from Chapter 11 in October, but the reports said it is being forced into liquidation by skittish lenders despite weeks of talks to keep the chain alive. According to Women’s Wear Daily, Goody’s had exhausted its cash, credit and restructuring resources by early December and, in the days leading up to Christmas and New Year’s, had circulated a plan to try to save the chain, but creditors evidently nixed the proposal.

Goody’s owner, Prentice Capital Management LP (New York), also owns bankrupt retailers KB Toys Inc. (Pittsfield, Mass.) and Whitehall Jewelers Inc. (Chicago) and held a stake in now-defunct Steve & Barry's LLC (Port Washington, N.Y.).

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