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Knoxville, Tenn. Goody's Family Clothing Inc., which filed for bankruptcy protection in June, on Tuesday said a court confirmed its reorganization plan. The U.S. Bankruptcy Court for the District of Delaware confirmed the plan, which is expected to become effective in about 10 days.
Since filing for bankruptcy, the moderately priced apparel retailer has focused on reorganizing its business model by reducing operating costs and focusing on leveraging its core assets. This included shuttering 69 underperforming stores operating in 18 states, and closing a distribution center in Arkansas and a corporate office in New York. The company also ceased operation of its e-commerce business and the operation’s fulfillment center in Tennessee.
“These efforts have significantly strengthened both our business and capital structure,” said Paul White, Goody's CEO. “Our plan has enabled us to eliminate considerable costs from our business and we now have a profitable store base that is more efficient and productive. This was all done while continuing to manage our stores without interruption serving our customers.”
The chain also managed to close a $175 million revolving exit credit facility provided by GE Corporate Lending and Bank of America, N.A. Goody's has also secured $10 million and $35 million exit term loans from GB Merchant Partners, LLC and PGDYS Lending LLC, respectively.