Goody’s to liquidate;

Boone store’s future unclear

Knoxville, Tenn.-based retailer Goody's Family Clothing will liquidate its remaining stores, its bankruptcy attorney said.

Cathy Hershcopf, a bankruptcy partner at the law firm Cooley Godward Kronish LLP, told Reuters the company is seeking to sell off all its collateral and inventory.

"The retail environment is very difficult and they did not have sufficient capital to weather the bad times,” she said in an interview with Reuters.

Citing high prices of fuel and food (leading consumers to spend less on nonessential items), the clothing retailer filed for Chapter 11 bankruptcy in June and emerged from the proceedings in October.

It has not been confirmed if or when the Boone store, located at Watauga Village off Blowing Rock Road, will close.

Goody’s regional manager Mike Rock said stores, including the Boone store, could remain open if the right buyer makes the right offer in the most optimistic scenario.

Hershcopf, however, said going-out-of-business sales could begin as early as Friday companywide.

Recently, Goody’s discontinued its tuxedo rental service and layaway and stopped issuing gift cards.

Women’s Wear Daily reported in November that the company “might be headed back to the courthouse for a second tour of bankruptcy,” adding the retailer might not try further restructuring.

Goody’s was founded in 1953 and currently has about 9,800 employees, with annual revenue of $800 million.
As of Dec. 10, Goody’s owned 287 stores in 20 states.

— Posted 4:10 p.m. by Jason Reagan