Staff and wire reports
The Goody’s Family Clothing store at the Salisbury Mall is among 103 the Knoxville, Tenn.-based chain will close as it files for Chapter 11 bankruptcy protection, the company said Monday.
The closings include five other North Carolina stores, according to information released by Goody’s.
Karyn Cherry, who manages the Salisbury store, referred questions to company headquarters. Employees learned of the closing Monday but do no have a timetable yet.
Paul White, chief executive officer of the privately owned chain, posted an open letter to customers on the company Web site.
“It is important for you to understand that Goody’s is not going out of business,” White wrote. 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 Goody’s is registered.
The filing comes less than three years after corporate namesake and then chairman-CEO Robert Goodfriend accepted a $327 million buyout by New York investment firms Prentice Capital Management and GMM Capital. The deal took private the company founded by Goodfriend’s 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.
On Monday, the company identified 69 of the 103 stores it plans to close:
Alabama ó Brook Highland, Homewood and Hoover (all in Birmingham), Springdale, Selma
Arkansas ó North Little Rock, Fort Smith, 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, Pekin
Indiana ó Terre Haute, Columbus, Kokomo, Bloomington
Kansas ó Hutchinson, Salina, Pittsburg
Kentucky ó South Lexington, Paducah, Lexington
Louisiana ó Houma, Alexandria
Missouri ó Joplin, Hannibal, Jefferson City
North Carolina ó Henderson, Gastonia, Concord, Asheville, Wilkesboro, Salisbury
Ohio ó Defiance, Piqua, Bowling Green, Massillon, Marion
Oklahoma ó Muskogee
South Carolina ó Harbison, Florence, Hilton Head, Aiken, North Myrtle Beach
Tennessee ó Hamilton Place, Northgate and East Gate (all in Chattanooga), Kingsport and Clarksville
Texas ó Texarkana, Killeen, College Station, Temple, Odessa
Virginia ó Lynchburg
West Virginia ó Morgantown