The first of many retaillers predicted to go under or file bankruptcy…

NEW YORK -(Dow Jones)- Goody’s Family Clothing Inc. (GDYS) is liquidating operations, becoming the first high-profile retailer to go under in a new year that is expected to see many more going-out-of-business announcements.

The moderately-priced chain was unable to restructure terms with its creditors and is in the process of seeking bids to liquidate substantially all of its inventory and other assets, said Cathy Hershcopf, bankruptcy attorney at law firm Cooley Godward Kronish LLP.[...]

[...]As recently as early November, White (company CEO) told the Knoxville News Sentinel that Goody’s expected to turn a profit by the end of the year.

“It’s huge. We’ve been very busy,” White told the newspaper, which is based in Goody’s home town of Knoxville, Tenn.[...]

[...]Goody’s has about 9,000 employees and operates 282 small department stores in about 20 states, mainly in strip malls in the Southeastern and Midwestern U.S.[...]