The move, less than four months after the privately held retailer emerged from Chapter 11 bankruptcy protection, affects the Knoxville-based chain's 287 stores throughout 20 Midwestern and Southern states, said Cathy Hershcopf, a partner at Cooley Godward Kronish LLP.
The firm is working with Goody's vendors and its parent, PGDYS Lending LLC. ON THE WEB: Search all 37 NC locations
It's uncertain what will happen to the company's 9,800 workers after the liquidation - being handled by a joint venture between Gordon Brothers Retail Partners LLC and Hilco Merchant Resources LLC - is completed by the end of March. But without a last-minute buyer or an investor to purchase high-performing stores, their job outlook is grim.
"I think every retailer experienced a great deal of pressure this holiday season because of the lack of consumer confidence," Hershcopf said. "But undercapitalized companies like Goody's experienced more pressure from their lenders and from their vendors."
Goody's filed for bankruptcy protection in June, saying the move would help it address "pressures from tightening credit markets, strain on merchandise flow and a sizable but isolated number of underperforming stores in the chain." />
