The economy has claimed another retail casualty. And just as stores are closing, new ones are emerging, even old stores are re-emerging. It gives hope.

Joining the likes of The Sharper Image and Linens-N-Things, Goody’s Family Clothing Inc. on Monday filed for Chapter 11 bankruptcy court protection, a casualty of both the economy and its own missteps, from expansion into urban areas to introducing higher-priced merchandise.

Goody’s has arranged a $210 million debtor-in-possession financing facility. The DIP financing includes $175 million under a revolving credit facility from General Electric Capital Corp.; $15 million under a term loan facility from GB Merchant Partners, an affiliate of Gordon Brothers, and $20 million under a junior term loan from PGDYS Lending, an affiliate of Goody’s parent, Prentice Capital Management.
The retailer in its filing did not list its largest secured creditors, but credit analysts believe Goody’s lender CIT tops that list.

The top two unsecured creditors are: Levi Strauss & Co. in Eugene, Ore. ($9.1 million) and Lee Co. in Charlotte, N.C. ($4.7 million). Other apparel vendors who made the top 20 unsecured creditors list include Jeri-Jo Knitwear Inc., Edison, N.J. ($3 million); Skechers USA Inc., Manhattan Beach, Calif. ($1.9 million); Unionbay Sportswear, Seattle ($1.7 million); Larry Levine/E-LO Sportswear, Harrison, N.J. ($1.3 million), and Gloria Vanderbilt, New York ($1.1 million).  (WWD)

BONWIT TELLER

When Bonwit Teller shuttered its Trump Tower store in 1990, it was seen by most as the final end to a depressing, prolonged demise that began with the controversial demolition of its historic flagship building several years prior to make room for the brassy tower that housed its final location.
While most of the legendary luxury chain’s store’s locations were closed, a few low-profile units remained as the company has since continued to change hands.
The last was shuttered in 2000, and now the Avenue Brands subsidiary of Chicago based River West Brands, the current owner of the name, has announced that they are bringing Bonwit’s back to New York, possibly before the end of the year. Another unit is set to follow in Los Angeles.

A flagship will likely bow in New York by the end of next year and be followed quickly by a door in Los Angeles. Ultimately, the chain could expand to about 20 stores in the U.S., said Andrei Najjar, interim chief executive officer of Avenue Brands, who was recently hired to relaunch the brand and perhaps add others to build a portfolio.

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