Last week, SEW reported that Goody's Family Clothing, Inc. had received an offer from an affiliate of Sun Capital Partners IV, LP to acquire the retailer for a cash price of $8.00 per share.  This week, Goody's received a competing offer from an undisclosed party to purchase the company for $8.50 per share.

Goody's also announced that three complaints were filed in connection with the original proposal from the affiliate of Sun Capital in Tennessee state court, naming both Goody's and its directors as defendants. Together, the complaints allege that the defendants breached their fiduciary duties by accepting an inadequate offer, by failing to address other acquisition proposals, by taking steps to discourage other acquisition proposals, including an excessive termination fee, and generally failing to maximize shareholder value.