KNOXVILLE, Tenn., Oct. 6 /PRNewswire-FirstCall/ -- Goody's Family
Clothing, Inc. (Nasdaq: GDYS) announced today that it has reached an agreement
in principle with an affiliate of Sun Capital Partners, Inc. to be acquired
for a cash price of $8.00 per share. It is anticipated that definitive
agreements will be executed within the next 48 hours. The transaction, which
will not be subject to financing or due diligence, contemplates the prompt
commencement of a cash tender offer followed by a cash merger. Robert M.
Goodfriend, Chairman and Chief Executive Officer of Goody's, and members of
his family who beneficially own an aggregate of approximately 42% of the
outstanding shares, have also agreed in principle to tender their shares in
the transaction. The definitive agreements with the Company and the
Goodfriend family will be subject to the continued support of the Goody's
Board of Directors in the exercise of its fiduciary duties. The agreements in
principle with the Sun Capital Partners, Inc. affiliate is also subject to the
final negotiation and execution of definitive agreements which will be
subject, among other things, to any necessary regulatory clearances and other
customary conditions. Goody's has agreed that it will negotiate exclusively
with the Sun Capital Partners, Inc. affiliate.
Goody's, headquartered in Knoxville, Tennessee, is a retailer of
moderately priced family apparel, and with the temporary closure of six stores
due to hurricane damage, currently operates 368 stores in the 20 states of
Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kansas,
Kentucky, Louisiana, Mississippi, Missouri, North Carolina, Ohio, Oklahoma,
South Carolina, Tennessee, Texas, Virginia and West Virginia.
SOURCE Goody's Family Clothing, Inc.
/CONTACT: Edward R. Carlin, Chief Financial Officer of Goody's,
CO: Goody's Family Clothing, Inc.; Sun Capital Partners, Inc.
IN: REA TEX FAS
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8631 10/06/2005 06:30 EDT http://www.prnewswire.com