Goody's Clothing Set to Liquidate Remaining Stores

Discount clothing retailer Goody's Family Clothing will begin liquidating its remaining stores. The decision came months after the retailer emerged from Chapter 11 bankruptcy protection.

Goody's, which has 287 stores and employs approximately 9,800 workers, decided to start liquidating its stores after it emerged from bankruptcy protection in October. The company's main reason behind liquidation is simple: the economy is doing horribly, according Cathy Hershcopf, a partner at Cooley, Godward Kronish LLP, the California law firm that is representing the retailer.

Goody's initially filed for bankruptcy in response to credit and merchandising problems. Under Chapter 11 bankruptcy protection, the retailer began cutting costs, shut a distribution center and a New York corporate office, and pulled the plug on its e-commerce business. In addition, 69 underperforming stores were closed during the reorganization process.

Goody's is a privately held company with locations mainly in the Southeast and Midwest.

To learn more about Chapter 11 bankruptcy, contact a bankruptcy lawyer near you!