Staff and wire reports
KNOXVILLE, Tenn. ó Privately owned Goody’s Family Clothing Inc. said Monday it is filing for Chapter 11 bankruptcy protection and will close 103 stores.
The closings include the company’s store in Salisbury, managed by Karyn Cherry, and five other North Carolina stores.
Cherry referred questions about the Salisbury store to company headquarters. Employees learned of the closing Monday but do no have a timetable yet.
Chief Executive Paul White posted an open letter to customers on the company Web page.
“It is important for you to understand that Goody’s is not going out of business,” White said. The company will close more than a quarter of its locations.
“While we expect the majority of our stores will remain open and will continue to operate without interruption, we plan to close some locations over the coming weeks,” he wrote.
The company couldn’t immediately say how many of its 12,000 employees will lose their jobs.
The company said it was filing a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware, where the company is registered.
The filing comes less than three years after corporate namesake and then chairman-CEO Robert Goodfriend embraced a $327 million buyout by New York investment firms Prentice Capital Management and GMM Capital to take private the company founded by his father as an Athens, Tenn., outlet store in 1953.
Today, Goody’s operates 355 stores across the South and Midwest. In January, the chain announced layoffs of 25 of its 500 employees at its corporate headquarters in Knoxville.
The company said it is seeking approval to pay its employees, continue various benefits and honor customer programs including layaway services and gift cards.
The company identified 69 of the 103 stores it is closing:
Alabama ó Birmingham, Brook Highland; Homewood; Hoover; Springdale and Selma
Arkansas ó North Little Rock, Fort Smith and Conway
Florida ó Palatka, Tallahassee, Panama City, Gainesville, DeLand
Georgia ó Kennesaw, Conyers, Newnan, Austell, Cumming, Gainesville, Hiram, Tucker, South Augusta
Illinois ó Carbondale, Danville and Pekin
Indiana ó Terre Haute, Columbus, Kokomo, Bloomington
Kansas ó Hutchinson, Salina, Pittsburg
Kentucky ó South Lexington, Paducah and Lexington
Louisiana ó Houma and Alexandria
Missouri ó Joplin, Hannibal and Jefferson City
North Carolina ó Henderson, Gastonia, Concord, Asheville, Wilkesboro and Salisbury
Ohio ó Defiance, Piqua, Bowling Green, Massillon and Marion
Oklahoma ó Muskogee
South Carolina ó Harbison, Florence, Hilton Head, Aiken and North Myrtle Beach
Tennessee ó Chattanooga, Hamilton Place; Chattanooga, Northgate; Chattanooga, East Gate; Kingsport and Clarksville
Texas ó Texarkana, Killeen, College Station, Temple and Odessa
Virginia ó Lynchburg
West Virginia ó Morgantown