JONESBORO, AR - Privately owned retailer Goody's Family Clothing, Inc. said this today that it is filing for Chapter 11 protection to restructure its business, but no stores in northeast Arkansas or southeast Missouri will be affected.
The Knoxville, Tennessee-based company said it filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.
Goody's 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 underperforming stores in the chain."
Goody's said it will close 69 underperforming stores as well as a Russellville distribution center. The company operates five stores in Region 8, including franchises in Jonesboro, Paragould, Batesville, Searcy, Poplar Bluff (MO) and West Plains (MO). However, the only Arkansas stores slated for closure at this time are in North Little Rock, Ft. Smith and Conway. The only Missouri stores planned for closure are in Joplin, Hannibal and Jefferson City.