Goody’s will liquidate inventory

By AMBER DILLEY
Glasgow Daily Times

GLASGOW January 07, 2009 03:20 pm

— Goody’s Family Clothing, a 55-year-old company with 287 stores across the Southeast, announced in an employee memo that it will be liquidating inventory.
The memo was obtained by WVLT in Knoxville, Tenn.
Goody’s has been surrounded with dismal reports since Women’s Wear Daily cited sources Dec. 12 as saying the company was out of cash and credit.
Just Saturday, the company reported that it would be suspending sales of gift cards, new layaways and tuxedo rentals, but honoring current accounts.
In the memo, CEO Paul White wrote: “Everyone should know we have exhausted any and all ideas up to this point to find ways to fund the company’s financial needs. Unfortunately, due to the overwhelming financial strain we are experiencing, along with the difficult retail climate, we have not been successful.”
White encouraged all employees to keep a positive attitude and stated the company would be “liquidating the inventory in our stores.”
“I want to assure everyone we are not withholding information, but rather have spent all of our time up to this point working on options to help the company,” White wrote. “We plan to share all of our findings when complete.”
The announcement in the memo comes only three months since Goody’s emerged from Chapter 11 bankruptcy. The bankruptcy closed stores in Lexington and Paducah.
The company exited bankruptcy following its purchase by Prentice Capital Management.
Another Prentice holding, KB Toys, recently announced it would be liquidating all stores.
Joanna Drake Gager, public relations coordinator for Goody’s, said in an e-mail Monday that the company did not have an official statement at the time.
Employees at the local store in Barren River Plaza were not able to comment on the matter.
Ammie Caffee, 20, and frequent shopper at Goody’s, said the loss of Goody’s will leave a retail hole in the community.
“I don’t know where I’m going to get clothes now,” she said. “Goody’s and Cato’s are really the only affordable stores, besides Wal-Mart.”
Caffee said she hopes the best for the employees.
“They were always so nice and friendly, I hope they’re getting some benefits from the company because of this,” she said. “I should have known those awesome sales were too good to be true.”