Exhibit 99.1
| Contact: | Edward R. Carlin Chief Financial Officer (865) 966-2000 |
GOODY’S FAMILY CLOTHING RECEIVES COMPETING ACQUISITION
PROPOSAL FROM THIRD PARTY
PROPOSAL FROM THIRD PARTY
Knoxville, Tennessee (October 12, 2005) — Goody’s Family Clothing, Inc. (Nasdaq:GDYS) today announced that it has received a competing acquisition proposal from a third party. One of the parties that had previously submitted a proposal to acquire Goody’s during the exclusivity period between Goody’s and Sun Capital Partners IV, LP, has reaffirmed its interest in acquiring Goody’s by submitting a revised acquisition proposal. The revised bid proposes a cash price of $8.50 per share, subject to due diligence, with the possibility of a higher price upon completion of due diligence. The proposal takes into account Goody’s obligations to pay a termination fee and expenses under the Agreement and Plan of Merger among Goody’s and certain affiliates of Sun Capital Partners IV, LP, dated October 7, 2005. The Goody’s Board of Directors has determined that this new offer would reasonably be expected to lead to a superior proposal (within the meaning given to such term in the Agreement and Plan of Merger). Therefore, as permitted under that agreement, Goody’s will commence a discussion and due diligence period of up to 10 business days with the competing acquiror in order to enable the Board of Directors of Goody’s to determine whether the offer is a superior proposal.
Goody’s disclosed earlier this week that it had entered into the Agreement and Plan of Merger with certain affiliates of Sun Capital at a cash price of $8.00 per share. The Company had previously received two acquisition proposals, one of which had been received during the exclusive negotiating period with Sun Capital and the other had been received a few hours after the execution of the Agreement and Plan of Merger, but before the merger agreement was publicly available.
This press release contains certain forward-looking statements which are based upon current expectations relating to the competing acquisition proposal and these statements involve material risks and uncertainties including: (i) that the competing proposal may be withdrawn or decreased upon completion of additional due diligence or the Company may be unable to enter into an agreement with the competing acquiror and (ii) the Company’s ability to consummate the agreement with Sun Capital on its original terms is subject to the conditions specified in the Agreement and Plan of Merger. Readers are cautioned that any such forward-looking statement is not a guarantee of future results and involves risks and uncertainties, and that actual results and outcomes may differ materially from those projected in the forward-looking statements. The Company does not undertake to publicly update or revise its forward-looking statements even if future changes make it clear that any projected results or outcomes expressed or implied therein will not be realized. Additional information on risk factors that could potentially affect the Company’s financial results may be found in the Company’s 2004 Annual Report on Form 10-K filed with the Securities and Exchange Commission. Certain of such filings may be accessed through the Company’s web site, www.goodysonline.com, then choose “SEC Filings.”
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.
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