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Published
Jan 28, 2009
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Goody's ex-employees file suit seeking salaries

Published
Jan 28, 2009

Jan 28 (Reuters) - A former worker of Goody's LLC filed a lawsuit against the company on Tuesday, claiming the bankrupt apparel retailer owes laid-off employees wages and other benefits, court documents show.


Goody's Family formalwear

The lawsuit, which is seeking class action status, claims that Goody's failed to give the employees at least 60 days advance notice of termination as required by the Worker Adjustment and Retraining Notification Act (WARN Act).

The laid-off employees are seeking to recover unpaid wages, salaries and other benefits for 60 days, the filing said.

Richard McGrath filed the suit on behalf of himself and about 480 former employees.

Goody's bankruptcy lawyer was not immediately available for comment.

Earlier this month, Goody's filed for Chapter 11 bankruptcy for the second time in less than in a year and began the process of liquidating its remaining 282 stores.

Founded in 1953 and based in Knoxville, Tennessee, Goody's had filed for Chapter 11 protection on June 9, 2008, and emerged on Oct. 20 after closing 74 underperforming stores.

The adversary case is In re Goody's LLC, 09-50043, U.S. Bankruptcy Court, District of Delaware (Wilmington).

The bankruptcy case is In re Goody's LLC, 09-10124, U.S. Bankruptcy Court, District of Delaware (Wilmington). (Reporting by Santosh Nadgir in Bangalore; Editing by Deepak Kannan)

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