NEW YORK, June 10 Bankrupt regional apparel
chain Goody's Family Clothing Inc is looking to hold an auction
as soon as this week for liquidation rights to close 69 of its
more than 350 stores, according to court documents.
The U.S. retailer filed for bankruptcy protection on
Monday. It had already closed 25 stores.
Goody's said in documents filed with the U.S. bankruptcy
court in Delaware that it felt it could hold a store closing
auction this week so that sales could begin before the Father's
Day holiday on June 15.
The company, based in Knoxville, Tennessee, would like to
begin liquidating stores no later than June 26, it said in the
It identified Hilco Merchant Resources as the lead bidder
for the rights to liquidate the stores. If Hilco is not
successful with its bid at auction, Goody's would pay the
liquidator a break-up fee of $220,000, according to the filing.
Under the Hilco bid, Goody's expects no less than 92.6 percent
of the cost value of the merchandise being liquidated.
(Reporting by Emily Chasan)