Court approves Goody's reorganization plan

KNOXVILLE, Tenn. Goody's Family Clothing announced that the company's second amended plan of reorganization has been confirmed by the United States Bankruptcy Court for the District of Delaware. The confirmed plan, which will facilitate the company's formal emergence from Chapter 11, is expected to become effective in approximately 10 days.

Paul White, ceo, stated, "Goody's has a solid 55-year heritage and our xompany has made great progress over the past few months. In particular, we have created a stronger and more nimble organization that is more effectively positioned to serve our very loyal customers. Today's decision will allow us to move our business forward with renewed vigour and we look forward to the opportunities that lie ahead."

Goody's commenced its Chapter 11 case on June 9. The company has continued to operate under the supervision of the Bankruptcy Court throughout the Chapter 11 process.