NEW YORK--Goody's Family Clothing Inc., said Thursday that Robert M. Goodfriend, who was ousted as the company's chairman and chief executive officer in September, will be reinstated as part of a deal to settle a dispute between Goodfriend and the company.
As part of the deal, which the Knox County Chancery Court approved, all members of Goody's board of directors, aside from Goodfriend, have resigned and been replaced by four directors appointed by Goodfriend.
Goodfriend said he had also reached an agreement with Roger L. Jenkins, president and chief operating officer, and George Rubin, executive vice president for merchandising, advertising and store operations, that calls for the two to leave the company.
Goody's, based in Knoxville, Tenn., has 117 stores throughout the Southeast. It estimated that it will take a $1.4 million special charge in connection with the agreement reached with Jenkins and Rubins.
Goodfriend, who along with his wife owns 63 percent of Goody's shares, filed suit to remove all of the current members of Goody's board except himself shortly after he was fired last year.
"I am extremely pleased that these controversies have been resolved and we can get back to focusing all our efforts on Goody's business," he said.
--Fairchild News Service

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