Goody's LLC has filed for Chapter 11 protection again with plans to liquidate its remaining 282 stores. The privately held family apparel retailer had emerged from bankruptcy in October.
According to a filing with the U.S. bankruptcy court in Wilmington, Delaware, a “significant downturn in the national economy caused severe and unexpected financial pressures,” and led to “unexpectedly poor” sales in the holiday season.
Goody's said it had investigated a number of alternatives, and ultimately concluded that the best way to maximize value for creditors was to conduct an orderly liquidation. It said it hired Gordon Brothers Retail Partners LLC and Hilco Merchant Resources LLC to conduct the liquidation.
The company has between $100 million and $500 million of both assets and liabilities, and between 25,000 and 50,000 creditors, according to its bankruptcy petition. Goody's filing also covers 13 affiliates.