KNOXVILLE, Tenn., Oct. 7 TN-Goody-reorg-plan
KNOXVILLE, Tenn. Oct. 7 /PRNewswire/ -- Goody's Family Clothing, Inc. (Goody's), a moderately priced family apparel retailer operating in small to midsize markets primarily throughout the Southeast, today announced that the Company's Second Amended Plan of Reorganization (the "Plan") has been confirmed by the United States Bankruptcy Court for the District of Delaware. The confirmed Plan, which will facilitate the Company's formal emergence from Chapter 11, is expected to become effective in approximately 10 days.
Paul White, Goody's Chief Executive Officer, stated, "Goody's has a solid 55-year heritage and our Company has made great progress over the past few months. In particular, we have created a stronger and more nimble organization that is more effectively positioned to serve our very loyal customers. Today's decision will allow us to move our business forward with renewed vigour and we look forward to the opportunities that lie ahead."
Goody's commenced its Chapter 11 case on June 9, 2008. The Company has continued to operate under the supervision of the Bankruptcy Court throughout the Chapter 11 process.
About Goody's Family Clothing, Inc.
Headquartered in Knoxville, Tennessee, Goody's is a retailer of moderately priced family apparel that currently operates 287 stores in the 20 states of Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and West Virginia. Goody's Holdings, Inc., the parent company of Goody's Family Clothing, Inc., is a privately held company owned by GMM Capital LLC, PGDYS LLC and PGDYS Lending LLC; Prentice Capital Management is the managing member of PGDYS LLC and PGDYS Lending LLC. For more information on Goody's, visit www.goodysonline.com.
Safe Harbor Statement
Certain statements made in this news release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are made based upon management's current expectations and beliefs concerning future developments and their potential effects upon Goody's. These forward-looking statements include statements regarding Goody's expectations concerning the bankruptcy process and the continuation of its day-to-day operations and payments to vendors and employees in the ordinary course. Actual results may differ materially from those included in the forward-looking statements due to a number of factors, including, but not limited to, the following: the ability of Goody's to continue as a going concern; the ability of Goody's to close exit financing; the ability of Goody's to consummate the Plan; the ability of Goody's to obtain trade credit, and shipments and terms with vendors and service providers for current orders; Goody's ability to maintain contracts that are critical to its operations; potential adverse developments with respect to Goody's liquidity or results of operations; the ability to fund and execute its business plan; the ability to attract, retain and compensate key executives and associates; and the ability of Goody's to attract and retain customers. There can be no assurance that future developments affecting Goody's will be those anticipated by management. Goody's disclaims any obligation to update or revise any of the forward-looking statements that are in this news release.
SOURCE Goody?s Family Clothing, Inc.
