Sun Capital Partners, a private-investment firm out of south Florida, is buying the Knoxville-based chain for $273 million.
Goody's operates 368 stores in 20 states with 11,000 employees. Its Panama City store is located on West 23rd Street.
The company went over $1 billion in revenue last year, but this year's hurricanes have taken a toll, forcing Goody's to close six stores.
There’s no word on when the deal will be complete, and Sun Capital hasn't said what it plans to do with the clothing chain.