Goody’s returns with the help of Specialty Retailers

Texas-based Specialty Retailers has bought the Goody's name. The deal was finalized at the beginning of July. The company plans to begin opening stores in some former Goody's markets this fall.

In June 2008, Goody’s filed for Chapter 11 bankruptcy for the first time. Under its reorganization plan, Goody's streamlined and reorganized its operations to improve the business model, significantly reduced operating costs, and maximized the value of core assets. This included the closure and liquidation of 69 underperforming retail locations in 18 states, the closing of a distribution center in Arkansas and a corporate office in New York, and the elimination of excessive corporate spending. In addition, Goody's eliminated the company's e-commerce business, as well as an associated distribution center in Tennessee.

In conjunction with the Plan, Goody's had successfully closed a $175 million revolving exit credit facility provided by GE Corporate Lending and Bank of America. In addition, Goody's had secured $10 million and $35 million exit term loans from GB Merchant Partners and PGDYS Lending respectively.

However, the company reported that it had unexpectedly suffered from poor sales after emerging out of their Oct. 2008 bankruptcy, same-store sales decreasing by 19.2%.  By comparison, the plan of reorganization was based upon a 2.9% decline.  Nov. 2008 same store sales decreased 18.4% and December 2008 same-store sales decreased 13.6%.

Goody’s emergence out of bankruptcy in October 2008 was followed by a second file for bankruptcy protection in January 2009.

New Goody's will open in several Tennessee locations, including Rogersville, Dayton and Kimbel. The Rogersville store will be in a former Goody's building and is scheduled to open in August.

Specialty Retailers owns several retail chains, including Peebles.