The president of Goody's Family Clothing Inc, Lana Cain Krauter, on Thursday quit the troubled 328-store apparel chain.

The Tennessee-based company, which is set to be sold to a group of private investors, said Ms Krauter has resigned but will help it until the end of the year as negotiations for its sale continue.

The 50-year-old’s duties will now be handled by chairman and CEO, Bob Goodfriend, and executive Max Jones.

Goody’s is currently being sued by several shareholders who are trying to block its sale to a private equity group for between $211 million and $244m.