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Goody's Closing 69 Stores in Bankruptcy

Value Priced Apparel Retailer to Reorganize
By Sasha M Pardy
June 9, 2008 | 7:21 P.M.

Knoxville, TN-based Goody's Family Clothing, operator of 372 value-priced family apparel stores in 20 primarily southeast states, filed voluntary chapter 11 bankruptcy. The retailer said reorganization is the best solution to overcome the pressure it has felt from the tightened credit market, strain on merchandise flow and a "sizeable" amount of underperforming stores. The company said it intends to carry out a restructuring plan and continue with business as normal throughout the process. To do this, it has secured a $210 million debtor-in-possession facility from GE Capital, GB Merchant Partners and PGDYS Lending. In addition, it is closing 69 underperforming stores, as well as its distribution center in Russellville, AK. (Note these closings are in addition to the 11 stores the retailer has already closed since January of this year.) The retailer's stores are typically located in neighborhood or community shopping centers in small to midsize markets. Typical store size is 20,000 to 40,000 square feet. Goody's leased its 235,000-square-foot facility in Russellville in 2002.

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