GAINESVILLE, Fla.

— Kids’ clothing brand Zod is leaving Georgia after a court ruling in its lawsuit against the state of Georgia.

The decision, issued Thursday, gives the company permission to go into bankruptcy, and it is expected to leave the state in about a month.

The company had been operating a Georgia-based distribution center for Zod since January, when the company’s owner, Robert G. Smith Sr., died.

Zod sued the state for more than $300 million, saying it failed to provide the proper training and supervision to train the company workers on the proper use of the state’s trademarked name.

Smith was a former president of the National Association of Manufacturers and was the chief executive of the company that had a headquarters in Atlanta.

GMA reported in October that Zod was seeking bankruptcy protection and seeking payment for Smith’s debts.

In a statement, Zod said that it was disappointed with the ruling and would appeal to the U.S. Supreme Court.