Report: Goody’s Close to Bankruptcy
Knoxville, Tenn. Goody’s Family Clothing is getting ready to file for Chapter 11 bankruptcy protection, according to The New York Post.
The report said that the chain has been dealing with a “business downturn” since going private in 2006. The downturn included cost cuts, store closings and layoffs.
The company has been seeking debtor-in-possession financing during the past week, the report said.
Most of Goody’s suppliers have stopped shipping merchandise to the company’s stores because payments to creditors have been “spotty for more than a month now,” the report said.
Target May sales rise 5.5%
MINNEAPOLIS Target reported that its net retail sales for May increased 5.5% to $4.6 billion from $4.3 billion for the same period last year. On this same basis, May comparable-store sales decreased 0.7%.
“Our comparable store sales performance in May was in line with our planned range,” said Gregg Steinhafel, president and ceo of Target.
Talbots to cut corporate staff by 9%
HINGHAM, Mass. Talbots said it is reducing its corporate staff by about 9% as part of its efforts to streamline operations and rationalize its cost structure. The company expects this action to result in estimated annualized cost savings of approximately $14 million, which contributes to the company’s goal to reduce its cost structure by a minimum of $100 million by the end of fiscal 2009 (as announced on Feb. 6).
Trudy Sullivan, president and ceo of Talbots, said, “A key finding of our strategic review completed in the first quarter of 2008 was the need to realign and streamline internal company functions to enable the successful execution of our long-range plan. We therefore are examining all areas of our business to maximize efficiency and drive overall improved productivity. We are making excellent progress in achieving all of the objectives laid out in our strategic long-range plan and are firmly on track to restore profitability from our ongoing core operations and deliver enhanced shareholder value beginning in 2008.”