BREAKING NEWS: Corbin Sam Goody store abruptly closes

An electronics and digital media entertainment store in north Corbin will close after business hours Saturday – the latest casualty in a nationwide economic downturn that is beginning to lead to an exodus of retail stores locally.

Employees at Sam Goody, located in the Corbin Station Shopping Center, confirmed Saturday that the store is closing. Customers patronizing the store seemed surprised as workers were boxing up inventory to be moved to another location. The company had not announced it was closing its Corbin store.

Rob Griffeth, an independent contractor working for clothing retailer Goody’s in Corbin, braves the cold Saturday and holds a “going out of business” sale sign to entice motorists on U.S. 25E to take advantage of last minute deals. Across the way, entertainment and electronics store Sam Goody announced Saturday it is closing as well.

The closure is the latest in a string of retail businesses hard pressed by recession. Clothing retailer Dawahare’s, formerly located in the Trademart Shopping Center, closed last year. In the Corbin area: Goody’s, Shephard’s Furniture, The Dixie Cafe, Legend Suzuki and Legend Outdoor Adventures have all either closed or announced they intend to close in the near future.

Sam Goody is owned by Trans World Entertainment Corporation. They company also owns F.Y.E., Coconuts Music and Movies, Wherehouse Music, Specs Music, Saturday Matinee: The Movie Store and Suncoast. According to a company press release, some store sales during the holiday period of 2008 were down 14 percent over the previous year.

“Sales for the holiday season were well below our expectations,” commented Robert J. Higgins, Chairman and Chief Executive Officer of Trans World Entertainment. “With this season’s holiday sales being lower than our expectations, we now anticipate EBITDA for the fourth quarter of $15 to $20 million with an annual EBITDA loss for fiscal 2008 in the range of $20 to $25 million, compared to our previously issued annual guidance of $10 to $15 million.”

For the eleven-month period ending January 3, 2009, comparable store sales decreased 11%. Total sales for the period decreased 22% to $928 million compared to $1.192 billion during the same period last year. During the eleven month period, the Company operated an average of 18% fewer stores than last year.

Employees at the Corbin Sam Goody said the store was not relocating to a new location.