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Goodys files for bankruptcy

THE SELMA TIMES-JOURNAL

Goody&8217;s in The Selma Mall may close soon.

Goody&8217;s Family Clothing, based in Knoxville, Tenn., has filed chapter 11 bankruptcy, which protects a company from creditors while it restructures its business, usually by downsizing and narrowing focus.

The petition was filed in Delaware Bankruptcy Court on June 6.

Local managers for Goody&8217;s declined to discuss the closing, one of 69 stores the corporation may close.

Carver Boynton, who manages The Selma Mall, declined to discuss specifics about the bankruptcy proceeding in detail, saying the company needed to address them. However, she said the bankruptcy filing was not the fault of anyone in Selma, but forces beyond the city.

Papers filed by Goody&8217;s corporation in court shows it has from 25,001 to 50,000 creditors and owes $100 million to $500 million.

In a statement released Monday, Goody&8217;s officials said the decision to file for chapter 11 follows an extensive review of alternatives to address pressures from tightening credit markets, strain on merchandise flow and a sizable but isolated number of underperforming stores in the chain.

Paul White, Goody&8217;s recently appointed chief executive officer said, &8220;The decision to close a large number of stores and further consolidate operations was a difficult one, and we regret the impact that this will have on some of our employees. However, we believe these are necessary steps as we work to improve the business and return to profitability.&8221;

Goody&8217;s Alabama Stores that may close:

Birmingham-Hoover

Birmingham-Wildwood (Homewood)

Birmingham Brook Highland

Mobile-Springdale