Goody's Family Clothing on East Tipton Street will close as the Tennessee-based retailer liquidates its assets.
The Seymour store employs 24 full- and part-time workers, Marilyn Miller, assistant manager of the store, said Tuesday evening.
"We're focusing on inventory right now," Miller said. "We just found out today. We're still in shock ourselves."
Miller, who's been employed with Goody's since 1997, said local employees have not been told when the store liquidation sale will take place.
The Knoxville News Sentinel, however, reported Tuesday that Goody's will begin going-out-of-business sales Friday.
It's not the only local clothing store that will soon wind down its presence here.
The Gap Outlet store at Shoppes of Seymour Outlet Center on the city's east side is expected to close Jan. 24. A manager at the store referred questions about the Gap closing to corporate media officials who could not be reached.
Bob Carbonell, chief credit officer for retail credit rating service Bernard Sands, confirmed with the News Sentinel that the clothing retailer is liquidating.
The paper reported that according to Reuters news service, Cathy Hershcopf, a bankruptcy partner at law firm Cooley Godward Kronish LLP, Goody's is "in the processes of obtaining bids to liquidate substantially all collateral and inventory. The retail environment is very difficult and they did not have sufficient capital to weather the bad times."
Goody's closed its Indiana stores in Columbus, Bloomington, Kokomo and Terre Haute last summer when the privately held firm announced it was filing Chapter 11 bankruptcy protection. It then planned to close 103 stores and its Arkansas distribution center. The Seymour store survived that cutback.
The Seymour store employs 24 full-time and part-time workers, Miller said.
The store entered the retail scene in Seymour in 1992, locating in space now occupied by a Chinese restaurant in the 2000 block of East Tipton Street. It moved into its current location, part of the first Seymour Wal-Mart store at 1505 E. Tipton St., in 1997.
With the Gap and Goody's closing, remaining retailers selling clothing - such as JC Penney, Wal-Mart and Maurice's - should benefit, Greater Seymour Chamber of Commerce President Bill Bailey said Tuesday night.
Tina Gills, manager of the JC Penney stores in Seymour and Columbus, could not be reached for comment Tuesday night, but Bailey said he spoke with her Tuesday afternoon.
"Having spoken with her today, there is absolutely no truth to the rumor that the Seymour Penney's store is closing, and they are looking forward to a long relationship in Seymour," Bailey said.
"She said they had a relatively good (holiday) season and we both commented how comforting it is to know that Penneys is in good shape.
Bailey said he's sorry to see Goody's close.
"My understanding is that our Goody's store in Seymour was a store that had some pretty good sales. Our local store is a victim of what's happening nationally with Goody's.
"This store had sales that justified it's staying open last summer (when others in the nation closed)," he added.