Sikeston Goody's fate is uncertain

SIKESTON - As national retailer Goody's Family Clothing prepares to begin liquidating stores Friday, the fate of local workers is still uncertain.

The company's 287 locations include stores in Sikeston, Cape Girardeau and Poplar Bluff.

Management at the Sikeston location Wednesday declined to comment on questions about the liquidation. There was no information available at the Knoxville, Tenn.,-based business's Web site about the local closing either.

Liquidation of Goody's holdings is to be completed by the end of March.

CooleyGodwardKronish LLP partner Cathy Hershcopf said the move will affect all of the chain's stores, but it is unknown how this will affect the company's 9,800 workers. The firm is working with Goody's vendors and its parent, PGDYS Lending LLC.

Without a last minute buyer or an investor to purchase high-performing stores, experts believe workers job outlook is grim.

Goody's is the second national retailer, with a Sikeston location, forced to close stores as the economy worsens. In 2007, Office Max closed its local site.

Goody's filed for Chapter 11 bankruptcy protection in June and emerged from proceedings in October. The 56-year-old corporation has stores in 20 Midwestern and Southern states.

In October, the chain released details of a reorganization plan approved by the United States Bankruptcy Court.

During bankruptcy proceedings, Goody's streamlined and reorganized its operations, significantly reducing operating costs and maximizing core assets, according to the company, which reports an annual revenue of more than $800 million.

Representatives of the chain reported reorganization included closing and liquidating 69 underperforming retail locations in 18 states, closing a distribution center in Arkansas and a corporate office in New York, as well as the elimination of excessive corporate spending. Goody's also eliminated the company's e-commerce business and an associated distribution center in Tennessee.

Paul White, Goody's chief executive officer, said at the time the company had strengthened both its business and capital structure.

"We believe … this will allow Goody's to continue to build on its 55-year-heritage," White said in October. "… We now have a profitable store base that is more efficient and productive."

The Poplar Bluff Daily American Republic provided information for this article.