According to published reports, Goody's Family Clothing is moving to liquidate. Credit sources told Women's Wear Daily that the family apparel chain was expected to conduct an auction of its inventory as early as Monday afternoon with potential liquidators.


Credit sources also told the trade paper that by early December, the Knoxville, Tenn.-based chain “had exhausted its cash, credit and restructuring resources.”


Separately, The New York Post reported that Goody's had held a conference call with its suppliers seeking “significant” concessions in order to continue operating.


Last week, the 287-store chain issued an order to all of its stores to discontinue gift card sales, new tuxedo orders and layaway service.

Goody's emerged from Chapter 11 bankruptcy protection in October 2008 after filing in June.