Blog: Bad news for Goody’s
Leonie Barrie | 9 June 2008
A statement today from Paul White, the CEO of Goody’s Family Clothing, suggests the retailer will emerge “stronger and healthier” from its bankruptcy filing. The question on many lips, though, is whether it can actually find a way to survive at all.
By its own admission, the firm has been dragged down by tightening credit markets, a strain on merchandise flow, and a sizable but isolated number of underperforming stores in the chain. Some media reports also suggest most of its suppliers have stopped shipping merchandise to the company's stores because of patchy payments, and that Levi Strauss & Co and Lee are among the unsecured creditors.
Goody’s, which targets cost-conscious shoppers in smaller towns, has also been caught between rising costs and competition from the likes of Wal-Mart. These discounters can offer a range of cheap merchandise under one roof, not just clothing, and make a more appealing shopping destination for consumers concerned about fuel prices.
But the retailer’s problems have been while in the making. At the beginning of this year Goody’s said it was cutting 5% of its corporate workforce as part of a reorganisation following a US$65m cash injection from investors. This, it said at the time, would provide adequate capital to execute its business strategies for the foreseeable future.
Things were obviously worse than management thought, and it now has just a month to file a reorganisation plan outlining its roadmap for the future.
Over the past month, Donald Trump and his team failed to offer any clear plan to ensure Americans would "Buy American, Hire American" - while the British government's attempts to clarify the specifics...
The Bangladesh government was forced to respond late last week to pressure over its crackdown on labour activists after a number of global brands and retailers, including H&M and Inditex announced pla...
Fresh from their disappointment at seeing the Trans-Pacific Partnership (TPP) free trade deal abandoned last month with an executive order by President Donald Trump, the US apparel and footwear sector...
With the ultimate aim of ensuring all the cotton in its products is sourced sustainably, value clothing retailer Primark is adamant that having a business model focused on offering the lowest prices o...
- Li & Fung eyes speed, innovation & digitalisation
- Digitalisation and data to disrupt supply chains
- 3D CAD comes of age
- EU eyes mandatory due diligence for apparel supply
- Unlocks for the future fashion sourcing landscape
- Li & Fung forms supply chain partnership with PVH
- Big data to help US firms improve clothing fit
- Labour rights risk Bangladesh EU trade benefits?
- Apparel group Sae-A opens second school in Haiti
- Hirdaramani to head WFSGI manufacturers committee
- Central and East Europe Report Package
- Central America strategic sourcing review - a focus on Guatemala, El Salvador and Honduras
- Outdoor performance apparel 2016: A broader perspective
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- REPORT BUNDLE: Africa-Med, Southeast Asia and Central America strategic sourcing pack