During the Chapter 11 bankruptcy, Goody's streamlined and reorganized its operations to improve the business model, significantly reduced operating costs, and maximized the value of core assets. This included the closure and liquidation of 69 underperforming retail locations in 18 states, the closing of a distribution center in Arkansas and a corporate office in New York, and the elimination of excessive corporate spending. In addition, Goody's eliminated the Company's e-commerce business, as well as an associated distribution center in Tennessee.The chain still has 287 stores in twenty states, mostly in the southeast and midwest.
Paul White, Goody's Chief Executive Officer, stated, "We believe we have significantly strengthened both our business and capital structure and this will allow Goody's to continue to build on its 55-year heritage. Our Plan has enabled us to eliminate considerable costs from our business and we now have a profitable store base that is more efficient and productive. Importantly, this was all done while continuing to manage our stores without interruption and successfully serve our customers.
Tuesday, October 21, 2008
Goody's out of bankruptcy
A slimmed-down version of Goody's Family Clothing has emerged from Chapter 11: