Regional department store chain Goody's has started new takeover negotiations after receiving a bid that values the retailer at about $280 million. 

The new $8.50-a-share bid, made by GMM Capital, rivals one previously made by Sun Capital Partners for $8 a share.

Analysts say Sun Capital's offer is low, and two shareholder lawsuits have been filed to challenge the deal.

A second interested party, Prentice Capital Management, also submitted a takeover offer while Good's was in exclusive talks with Sun Capital.

The retailer will start a discussion and due diligence period up to a maximum of ten days to decide whether the offer by GMM should be taken up.

Goody's sells mid-priced family apparel in 368 stores across the US.