“But undercapitalized companies like Goody’s experienced more pressure from their lenders and from their vendors.” Goody’s filed for bankruptcy protection in June, saying at the time that the move would help it address “pressures from tightening credit markets, strain on merchandise flow and a sizable but isolated number of underperforming stores in the chain.” As part of its reorganization plan, the company closed and liquidated dozens of underperforming stores, shuttered a distribution center in Arkansas and a corporate office in New York."It is both exciting and humbling to join the team that is taking the Wal-Mart mission of saving people money so they can live better to customers around the world," he said.
Looking for overstock, customer returns, shelf pulls, or new wholesale products?
Analysts say the mega discounts of the past few months may have altered consumers' psyches: Shoppers may be more hesitant to splurge on items they are used to getting for half price. "It's a vicious cycle that on one wants to continue," says Gilbert Harrison, chairman of Financo Inc., an investment banking firm specializing in retail.
[Source: Yahoo Finance] Mc Millon named CEO of Wal-Mart International -- Wal-Mart Stores Inc. 7 that Doug Mc Millon will soon assume the role of president and CEO of Wall, the retailer's second largest operating segment.
-- After a holiday season marked by deep discounts, shoppers have become accustomed to those 75 percent-off sale signs, and retailers are worried they'll have to quickly slash prices on spring and summer merchandise to attract customers. Crew Group Inc., are already trimming prices on their spring collections.
“We haven’t been told anything and I don’t know when an announcement will be made,” said Jim Cronin, a spokesman based at Goody’s headquarters who serves as a liaison with store staff.
Goody’s liquidation follows last week’s bankruptcy filing of the Parent Company, which plans to sell its business in an auction after the holiday shopping season wasn’t enough to refill its coffers.
The move, which comes less than four months after the privately held retailer emerged from Chapter 11 bankruptcy protection, affects the Knoxville, Tenn.-based chain’s 287 stores scattered throughout 20 Midwestern and Southern states, said Cathy Hershcopf, a partner at Cooley Godward Kronish liquidating operations, becoming the first big chain to go under in 2009.
The company was unable to restructure terms with its creditors and is in the process of seeking bids to liquidate its inventory and additional assets, said Cathy Hershcopf, bankruptcy attorney at law firm Cooley Godward Kronish .