Moore County is losing one of its more popular clothing stores.

Goody's Family Clothing Inc., which operates a store in Pinecrest Plaza in Southern Pines, is liquidating its operations and closing its stores.

"We were formally informed (Tuesday)," said local store manager Tom Lupei.

Lupei indicated that the store would take inventory next Tuesday. He said the parent company was negotiating with liquidators.

It was reported earlier this week that the company would hold an auction to liquidate its assets next week. The company filed for Chapter 11 bankruptcy protection in June and emerged in October. But apparently, holiday sales were slower than expected.

The local store has 30 full- and part-time employees. The store is the third-highest volume producer in a 12-store district, Lupei said.

Over the holiday season, the store held numerous promotions and sales to generate business. On "Black Friday," the day after Thanksgiving, some 200 customers were lined up outside of the store to take advantage of the discounts.

Goody's sells moderately priced family apparel and operates in small- to mid-size markets primarily throughout the Southeastern United States, according to its Web site. Headquartered in Knoxville, Tenn., the company has 287 stores in 20 states. It has about 9,800 employees.

Lupei said he was surprised that the company was closing its stores.

"We felt like everything was going to be OK," he said, referring to the reorganization. "We did what we were supposed to do."

Contact John Krahnert III at 693-2473 or by e-mail at jkrahnert@thepilot.com. Online Editor Hunter Chase contributed to this story.