Posts Tagged ‘bankruptcy’

I felt like I was doing the publishers clearing house contest tonight!

May 12th, 2009
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Well the bankruptcy papers arrived a week ago from Goody’s Family Clothing and I have delayed filling them out due to my own ignorance of the legal system. It’s funny you go to school and learn about the three branches of the government, you learn about the justice system but the one thing they don’t teach you is how to fill out a legal claims form. I realize this event doesn’t happen to most people, but then again I never get stopped on the street and asked what the three branches of government are called. So I did what anyone would do, I called my dad who is a lawyer and said “help!!” The consensus was fill out the pink and yellow forms. Basically fill them all out and let the lawyers for Goody’s figure out which one is necessary. Besides, it seems silly to file a claim for money from a company that not only went bankrupt but is non-existent. I hear there are still remnants of the company left but honestly I couldn’t care less what happens to that company at this point. Lots of great experience came from my 7 years at Goody’s. But then with good came bad including layoffs like clock-work. I worked with some fantastic people and some that could only be described as bottom dweller scum suckers. Lots of those critical life lessons you hear about. All experiences I truly value, but definitely time to move on.

Anyways, so I filled out the forms, stuffed them in the envelopes put stamps on them and with any luck someone will be sending me a check!! Should I wait by the door? Perhaps Mr. Dabaah who was one that I feel is one of the most responsible for the failure of the company will come to my house with balloons and a giant check. Wouldn’t that be a sight?

You might ask why I am even filing a claim? Because Goody’s was in violation of the WARN act for the 500+ people they laid off on January 12th by not giving any of us notice. When a company fails to provide notice that they are shutting down, etc they are in violation of the WARN act and from what I understand are liable to provide up to 60 days pay. With any luck that should be a nice extra chunk of change. But in all honesty, I don’t expect anything to come from this. After all the company has so many creditors they owe money to and my claim is nothing compared to the millions they owe Levi and the other big brands.

Interesting fact, Goody’s has screwed over so many vendors using a number of “names” they operated under. My favorite has got to be “SYDOOG” Yep, they had a company named GOODYS backwards.

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How many times can you kill a company?

April 11th, 2009
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So I’m reading the news this morning and I see an article that is titled “Potential buyers emerge for Goody’s Family Clothing.” Now I thought to myself that I must be reading an old article. After all the company fired 500+ corporate workers on January 12th, shut down every store by February 29th 2009 and reportedly shut down the office yesterday. Goody’s has already been sold numerous times and every time it got progressively worse. But reading the article it sounds like someone might buy the name just to keep it from opening under that name in the future. Other parts of the article point to small investors perhaps coming in and reopening stores under the Goody’s name. which leads me to my question of, just how many times can you kill a company?

In all honesty I don’t care what happens to “Goody’s” at this point as I have long moved on to a bigger, better and actually profitable company. I had a great 7 year run with them but the last 2 of those 7 years sucked as it was constant flux of problems, bankruptcies, lies and deceit from the top level management. So many employees were screwed by the final owners of Goody’s (Isaac Dabaac and Michael Zimmerman) and I can’t imagine anyone with any sense going right on back for another round of abuse. Sure things good be different but the likelihood of that in my opinion is slim. On the flip side however, there are still a lot of unemployed IT people from the former company and if this is in fact true then if reopened they will be able to get one heck of a support staff.  If I were in their shoes, the only way I would even consider going back is if Goodfriend came back in, bought the name and reopenend back under his leadership, but then again, he did in essence “sell” all the employees when he turned and left so there is definitely mixed emotions on that front. He sold it once, why wouldn’t he sell it again? And I know nothing about what’s going on so I have no idea if Goodfriend is even a possibility. But ever since he sold it the feelings were he was going to let it tank, then come back in and buy it back for pennies on the dollar. If that’s true it’s smart on his part to make a ton of money, but at the same time he gambled with thousands of lives of the employees plus the name and reputation of the company has been devastated. So I hope it isn’t true.

So just how many times can you kill a company?

And if you want to read the article I am talking about, you can find it here -> http://www.knoxnews.com/news/2009/apr/11/potential-buyers-emerge/

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Unemployment, Autos, pizza and denial

December 4th, 2008
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I like to read the news. It allows me to become utterly depressed. After all, watching the stock market it rose pretty good, then a group says “we have officially been in a recession since Dec. ’07.” Then the stock market plummeted. Some say it was caused by profiteering where people saw profits from the previous week, and sold which caused the down turn, but I think it’s a mixture.

Anyways, today I was on CNN and saw the following (to the right) headlines that sort of contradicted themselves. For instance, first Unemployment claims fall…That’s great news right? Well then the next story is AT&T is slashing 12,000 jobs. Well that means unemployment will go right back up.

With so many companies doing so many things there is no wonder why the economy is in trouble. Auto makers begging for billions to “keep customer confidence. Umm Auto industry, you have already lost the confidence of the consumer when you said “we need billions to stay afloat.” Filing bankruptcy would actually bring confidence from most consumers because we would know your business model was being restructured and you were being put into a stronger position to continue to conduct business. Being handed billions on a failing business model isn’t going to do anything but delay the collapse.

And I know the “bail out” for the auto industry is more of a loan, but come on. We all know it’s not a loan when we all know that auto industry is likely to collapse and not be able to repay the loans.

Corporations around the country are laying off seasoned workers to bring in others for a much lower wage, but with that you have to realize that you just lost a ton of experience and wisdom. Mistakes will be made that have the potential to cost your company a lot more then the salary of one seasoned worker simply because you wanted to “cut payroll expenses.

Pizza is another industry that is a bit irritating right now. When fuel prices sky rocketed Pizza hut and others implemented a mandatory delivery fee of about $2.00 per order. This fee from what I understand doesn’t go to the driver but the company for the increased cost of delivering goods to the pizza franchise. Well, with gas prices at a 3 or 4 year low where they have been for a few weeks now. That meakes me ask why did I pay that $2 fee last night when I ordered pizza?

Companies really aren’t making a lot of sense right now. The big thing is they aren’t being honest to the consumers, sort of reminds me of this dude to the right.

The companies are all begging for money and really it doesn’t take a freebie to solve your issues. It takes figuring out the problem and fixing the PROBLEM and not the SYMPTOM.

It’s like consumer debt. Flooding money into consumer debt to pay if off isn’t going to do anything unless you change the behavior of the individuals. Sure you may get out of debt really quickly but the behavior hasn’t changed so within a short period you’ll be right back where you started.

Companies really need to grow up, they need to figure out where the strengths are and use those strengths to fix the weaknesses they have. Throwing money and firing seasons workers really isn’t the way to that.

That being said, I have nothing against eliminating positions if it is required because the position is obsolete, or the worker isn’t earning their salary or a more efficient way to do the job has come around. But this total lack of common sense, that is where I have a problem at.

All companies need to do is:

1. Admit there’s a problem
2. FIX IT!

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Goody's has emerged from bankruptcy today!

October 20th, 2008
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For those of you following the stories. Goody’s filed for Chapter 11 Bankruptcy protection back in June of this year. After large layoffs and closing around 100 stores, our new york offices and a distribution center the company emerged from the bankruptcy today!

If  you would like to see the public court records of the bankruptcy you can go to www.LoganAndCo.com and click on “CASE INFORMATION” and then select “GOODYS FAMILY CLOTHING. This will get you access to all public information that is available.

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Goody's Family Clothing Update

October 8th, 2008
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For those of you following the company I work for a new development has been made regarding our bankruptcy and restructuring plan.

Court approves Goody’s Clothing reorganization plan
October 08, 2008 (USA)

Goody’s Family Clothing Inc a moderately priced family apparel retailer operating in small to midsize markets primarily throughout the Southeast, announced that the Company’s Second Amended Plan of Reorganization (the “Plan”) has been confirmed by the United States Bankruptcy Court for the District of Delaware.

The confirmed Plan, which will facilitate the Company’s formal emergence from Chapter 11, is expected to become effective in approximately 10 days.

Paul White, Goody’s Chief Executive Officer, stated, “Goody’s has a solid 55-year heritage and our Company has made great progress over the past few months.

In particular, we have created a stronger and more nimble organization that is more effectively positioned to serve our very loyal customers.

Decision will allow us to move our business forward with renewed vigour and we look forward to the opportunities that lie ahead.”

Goody’s commenced its Chapter 11 case on June 9, 2008. The Company has continued to operate under the supervision of the Bankruptcy Court throughout the Chapter 11 process.

 
Goody’s Family Clothing Inc
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