Report: Goody’s Close to Bankruptcy

Knoxville, Tenn. Goody's Family Clothing is getting ready to file for Chapter 11 bankruptcy protection, according to The New York Post.

The report said that the chain has been dealing with a "business downturn" since going private in 2006. The downturn included cost cuts, store closings and layoffs.

The company has been seeking debtor-in-possession financing during the past week, the report said.

Most of Goody's suppliers have stopped shipping merchandise to the company's stores because payments to creditors have been "spotty for more than a month now," the report said.