MIDDLESBORO — Many local retailers have struggled to stay afloat after a stretch of lackluster Holiday sales — and some have shut their doors completely. The next to join a list of local retailers with uncertain futures is the Goody’s clothing store in the Village Square Shopping Center of Middlesboro.

A Goody’s store employee, who asked not to be named, confirmed that their store has indeed been asked by the corporate office to stop selling gift cards, halt their layaway program, and cancel tuxedo orders. He said reports of the store closing was only a rumor. Calls to other stores reported the same change in policy.

The Goody’s corporate office declined to comment.

The future for the company has been uncertain for a while. Last year, Goody’s filed for Chapter 11 bankruptcy on June 9, and emerged from bankruptcy on October 20, according to a press release from the retailer. Goody’s closed and liquidated 69 stores and terminated their e-commerce business.

During the bankruptcy, “Goody’s streamlined and reorganized its operations to improve the business model, significantly reduced operating costs, and maximized the value of core assets. This included the closure and liquidation of 69 under-performing retail locations in 18 states, the closing of a distribution center in Arkansas and a corporate office in New York, and the elimination of excessive corporate spending... as well as an associated distribution center in Tennessee,” the company claimed through a written public statement.

After clearing the wreckage with Chapter 11, White was optimistic in October.

“We believe we have significantly strengthened both our business and capital structure and this will allow Goody’s to continue to build on its 55-year heritage,” he said in a press release.

And the company’s heritage actually has ties to Middlesboro. In 1913, the company’s founder, Mike Goodfriend, arrived in Athens, Tennessee from Middlesboro and opened The M. Goodfriend Store.

After his son, M.D. continued the outlet stores, Mike Goodfriend’s grandson, Bob Goodfriend, joined the company and changed the name to Goody’s Family Clothing in 1978.

In November, the future finally looked brighter for the company. Goody’s CEO Paul White told the Knoxville News Sentinel that the company expected to turn a profit by the end of the year.

But in December, the New York Post reported that their sources said the retailer is struggling to stay afloat after the restructuring. The Post reported that industry insiders speculated that a “disappointing holiday season could threaten the chain’s solvency next year” and that GE Commercial Finance, Goody’s lender, could pull its support for a reorganization plan it had approved this fall.

If Goody’s closes, it will join a long list of stores that have shut their doors recently. Starting with Dawahares in September last year, four stores have closed or announced their closing at the Middlesboro Mall alone, including Steve & Barry’s, Underground Attitude, and KB Toys.

Stephen Woodward is a Staff Writer for the Daily News. He may be contacted at swoodward@middlesborodailynews.com.