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US retailer Goody's wants to begin closing stores
June 10, 2008 / 6:17 PM / 9 years ago

US retailer Goody's wants to begin closing stores

NEW YORK, June 10 (Reuters) - 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 court filing.

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)

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