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Boone location’s future uncertain
By Jason Reagan
The future of Boone’s Goody’s
store is uncertain, as the Knoxville, Tenn.-based retailer
announced it would liquidate its remaining stores, after
filing Chapter 11 bankruptcy. Photo by Mark Mitchell
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Knoxville-Tenn.-based retailer Goody’s Family Clothing
will liquidate its remaining stores, its bankruptcy attorney
said.
Cathy Hershcopf, a bankruptcy partner at law firm Cooley Godward
Kronish LLP, told Reuters the company is seeking to sell off
all its collateral and inventory.
“The retail environment is very difficult and they did
not have sufficient capital to weather the bad times,”
she said in an interview with Reuters.
Citing high prices of fuel and food (leading consumers to spend
less on nonessential items), the clothing retailer filed for
Chapter 11 bankruptcy in June and emerged from the proceedings
in October.
It has not been confirmed if or when the Boone store, located
at Watauga Village off Blowing Rock Road, will close.
Goody’s regional manager Mike Rock said stores, including
the Boone store, could remain open if the right buyer makes
the right offer in the most optimistic scenario.
Hershcopf, however, said going-out-of-business sales could
begin as early as Friday companywide.
Recently, Goody’s discontinued its tuxedo rental service
and layaway and stopped issuing gift cards.
Women’s Wear Daily reported in November that the company
“might be headed back to the courthouse for a second tour
of bankruptcy,” adding the retailer might not try further
restructuring.
Goody’s was founded in 1953 and currently has about 9,800
employees with annual revenue of $800 million.
As of Dec. 10, Goody’s owned 287 stores in 20 states.
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