Goodys Family Clothing, Inc. has filed a voluntary petition for reorganization under Chapter 11 in the United States Bankruptcy Court for the District of Delaware. The company said it intends to execute a comprehensive corporate restructuring plan, while continuing to operate the business “without interruption.”
As part of the restructuring, the company plans to: close 69 under-performing stores; consolidate its distribution centers by closing one facility in Russellville, AR; significantly reduce expenses; and, create a more appropriate capital structure.
In conjunction with the filing, Goodys is seeking and expects to receive approval for a variety of first-day motions that will enable it to continue operating in a business as usual manner. The motions include requests to make wage and salary payments, continue various benefits and honor customer programs such as layaway services and gift cards.
Goodys has secured a commitment for $210 million in debtor-in-possession (DIP) financing to supplement its working capital and provide adequate liquidity while
