Local Goody’s to survive 69 store closings

Goody’s Family Clothing is filing for Chapter 11 bankruptcy and will close 69 stores and an Arkansas distribution center. However, the Goody’s store in McMinnville at Three Star Mall is not one of the stores scheduled to close, according to the company’s Web site.
‘We’re tickled to death we’re not losing them,’ said mall manager Teresa Martin. ‘Everybody in town shops at Goody’s and that’s probably the reason we’re keeping this store because it does a good business here. We definitely didn’t need to lose Goody’s because they’re an asset to our mall.’
Goody’s operates 355 stores in 20 states across the South and Midwest. In January, the chain announced layoffs of 25 of its 500 employees at its corporate headquarters in Knoxville.
The store in McMinnville employees around 30. The chain has roughly 12,000 employees.

According to its list of store closings, Goody’s will close five stores in Tennessee. The closest are two stores in the Chattanooga area. The hardest hit state is Georgia with nine stores scheduled to be closed.
Goody’s said the 69 stores that will be closed were picked because they are operating at a loss. CEO Paul White says he believes Goody’s will emerge from bankruptcy as a stronger company once it sheds its under-performing stores.
‘The decision to close a large number of stores and further consolidate operations was a difficult one and we regret the impact this will have on some of our employees,’ said White. ‘However, we believe these are necessary steps as we work to improve the business and return to profitability.’
Goody’s is one of the Three Star Mall anchors along with JCPenney, Kroger, and now Roses. While unable to comment on the bankruptcy filing due to company guidelines, local manager Susan Hutcheson has always said the store in McMinnville enjoys solid sales.
The company said it decided to file for Chapter 11 after reviewing alternatives to address ‘pressures from tightening credit markets, strain on merchandise flow, and a sizable but isolated number of under-performing stores in the chain.’
Goody’s also wishes to stress the chain is not closing.
‘Please be assured Goody’s is not going out of business,’ the company said on its Web site. ‘We will continue to provide the quality brands, great value and exceptional customer service we have provided for more than 55 years.’
The company said it is seeking approval to pay its employees, continue various benefits and honor customer programs including layaway services and gift cards.
Goody’s operates stores in Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Virginia and West Virginia.