Goody's name, logo sold

A Texas-based retailer has acquired the intellectual assets of bankrupt Goody's Family Clothing and could begin opening stores in former Goody's markets as early as this fall.

Specialty Retailers Inc., a subsidiary of Stage Stores, purchased the Goody's trademark, including its name and logo, for $300,000, according to documents filed in U.S. bankruptcy court in Delaware.

"We recognized by Goody's going out of business that it left a void in a lot of markets," said Bob Aronson, Stage Stores vice president of investor relations. "There are a number of desirable markets that would be good for our stores. Goody's has strong name recognition in those areas. By acquiring the rights to the name, it gives us the flexibility to use it if we choose to."

Goody's private label brand Duck Head was sold separately to a Virginia company, DHIP Holdings Inc., for nearly $2.7 million.

The assets were sold at auction last month, with the most interest in the Duck Head brand, said Gabe Fried, managing member and founder of Streambank LLC, the Massachusetts firm hired to liquidate the former Knoxville-based retailer's intellectual property. The sale agreements were finalized last week.

Goody's, which was founded in 1953 by the Goodfriend family, filed for Chapter 11 bankruptcy protection last June, reorganized and emerged from bankruptcy in October. It began liquidating its stores in January.

"We recognized by Goody's going out of business that it left a void in a lot of markets"

Bob Aronson, Stage Stores vice president of investor relations

Streambank started a "Save Goody's" Web site in April after receiving an outpouring of support from former employees and customers who wanted the stores to reopen.

The Web site allowed visitors to sign an online petition that would be given to the new owners to contact former employees and to communicate with former customers. More than 1,200 individuals signed the petition.

Stage Stores, whose fiscal year runs Feb. 1 to Jan. 31, expects to open 15 stores in its third quarter with a "high likelihood" that many of those would be in former Goody's markets, Aronson said.

Many Goody's shoppers might be familiar with Stage Stores if they've ever been in a Peebles, one of four names the Texas retailer operates under.

Stage Stores is a moderately priced retailer that operates under the Bealls, Palais Royal, and Stage names throughout the South Central states, and under the Peebles name throughout the New England, Mid-Atlantic, Southeastern, and Midwestern states.

"We're very familiar with the Goody's brand. We've competed with Goody's in 100 markets"

Bob Aronson, Stage Stores vice president of investor relations

There are 24 Peebles located in small towns in Tennessee.

"We're very familiar with the Goody's brand. We've competed with Goody's in 100 markets," Aronson said.

Stage locates in small towns with 50,000 people or less within a 10-mile radius of a store. Like Goody's, it appeals to the entire family, selling women's, men's, junior's, petites, plus size and intimate apparel.

While Goody's was heavy on private label, Stage Stores sells only 15 percent private label merchandise with 85 percent being nationally known brands.

"Our motto is bringing name brands to small towns," Aronson said.

Business writer Carly Harrington may be reached at 865-342-6317.