In a time when economic turmoil and a worsening economy
affect the country, it becomes apparent that our community is not
exempt from bearing at least some repercussions of the economic
According to Goody's corporate management, the stores
began liquidating not only stock but fixtures yesterday and will
continue until all stores close for good on Jan. 22.
Goody's, a 55-year-old, privately held retail company of
moderately priced clothing and accessories, has been struggling for
the past several years. The company employs 9,800 people in 282
stores in 20 states, primarily in the Southeast and Midwest.
Last year, Goody's worked to maintain solvency by closing over 30
stores, including a half-dozen in Illinois. But cost-cutting efforts
were not enough to keep the retailer going when the company was
unable to work out a restructuring of its debt with suppliers and
This failure to renegotiate its debt structure forced the company
to file a petition of bankruptcy. Rather than restructuring, the
stores will go through an asset liquidation, effectively ending the
retailer's place in the industry.
As late as midsummer, Goody's executives had gone on record as
stating they believed the previous cutbacks in stores and personnel
would bring them back to profitability as early as 2009, but that is
not the case.
Industry analysts have long stated that the retailer did not have
sufficient working cash on hand to survive a severe downturn in
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Although a memo to staff at all store locations spelled out the
procedures for the retailer's final days, several attempts by media
to reach corporate officials, as well as suppliers, have been
At the Lincoln location on the west end of town, a store clerk
was able to confirm that the store will be closing on Jan. 22.
Currently, items are marked at 30-50 percent off, and there is no
official report if discounts will be increased in the ensuing days.
The store stopped issuing gift cards last week. Customers who
purchased items before Jan. 9 will be allowed to return them, but no
returns on sales after that date will be accepted.
The retailer reported sales of $904 million in 2007.