Apparel retailer Goody's Family Clothing Inc emerged from Chapter 11 bankruptcy protection yesterday (20 October) after a US bankruptcy court approved the company's reorganisation plan.

The Knoxville, Tennessee based retailer, which sells moderately priced family apparel from 278 stores in south eastern states, has streamlined its operations since it filed for bankruptcy on 9 June.

This has included shuttering 69 stores, as well as closing a distribution centre in Arkansas, a corporate office in New York, and its e-commerce business.

Paul White, Goody's chief executive officer, said: "We believe we have significantly strengthened both our business and capital structure and this will allow Goody's to continue to build on its 55-year heritage.

"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."

As part of its reorganisation, Goody's has also closed a $175m revolving exit credit facility from GE Corporate Lending and Bank of America, and secured $10m and $35m exit term loans from GB Merchant Partners and PGDYS Lending.