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Goody's going out of business

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By April Wright, Reporter

After emerging from Chapter 11 bankruptcy, Goody's Family Clothing will lay off its employees and close its doors — including its Galax store — the company announced this week.

Management at Goody's Family Clothing in Galax was given orders not to provide any further information, but the assistant manager did say that the last day the store will be open is not certain at this time.

Goody's will begin a going-out-of-business sale today, Friday.

A meeting was held with potential liquidators that may run the sale, said Bob Carbonell, chief credit officer for retail credit rating service Bernard Sands.

Goody's is in the process of obtaining bids to liquidate substantially all collateral and inventory.

According to a press release, earlier reports said the Knoxville, Tenn.-based apparel retailer tried to negotiate with suppliers the week of Christmas to avoid liquidation.

Last week, the retailer stopped issuing new gift cards and discontinued its layaway and tuxedo rental services.

Goody's filed for Chapter 11 bankruptcy protection in June 2008, reorganized and emerged from bankruptcy in October.

In November 2008, Women's Wear Daily reported that the retailer might be headed back to the courthouse for a second tour of bankruptcy — but it might not even try to restructure.

Goody's, founded in 1953 by the Goodfriend family, became a privately held company in 2006. It has annual revenues of $800 million.

According to its Web site, Goody's has more than 10,000 employees and more than 286 stores in 20 states.

Neither Goody's officials nor the Virginia Employment Commission were able to say how many people the Galax store employees.