Goody's Family Clothing is getting ready to file for Chapter 11 Bankruptcy protection, according to The New York Post.
The Post reports that the more than 350-store chain has been dealing with a "business downturn" since going private in 2006. The downturn included cost cuts, store closings, and lay offs, the paper says.
The Knoxville-based company has been seeking debtor-in-possession financing during the past week, The Post reports. DIP financing is "financing arranged by a company while under the Chapter 11 bankruptcy process," according to Forbes' Investopedia.com.
The Post says most of Goody's suppliers have stopped shipping merchandise to the company's stores, because payments to creditors have been "spotty for more than a month now."