Apparel retailer Goody's Family Clothing Inc is expected to emerge from Chapter 11 bankruptcy protection in the next 10 days or so, after a US bankruptcy court approved the company's reorganisation plan.

Paul White, Goody's chief executive officer, said today (8 October): "Our company has made great progress over the past few months...in particular, we have created a stronger and more nimble organisation."

Goody's, which operates 287 stores, filed for bankruptcy on 9 June blaming slowing apparel sales.

As part of its reorganisation plan, it is closing 69 stores.

It also secured a commitment for $210m in debtor-in-possession (DIP) financing to supplement its working capital and provide adequate liquidity while it works to clear its debts.