Mervyns to hold going-out-of-business sales at remaining stores

By Caroline Salls

Pittsburgh, Oct. 17 - Mervyns LLC plans to hold going-out-of-business sales at all of its remaining 149 locations and to wind down its business, according to a company news release.

Together with its financial and legal advisers, Mervyns said it completed a thorough analysis of all available options, including a sale of the company, and the company and its board of directors decided that holding going-out-of-business sales during the holiday season is the best way to maximize value for creditors.

Mervyns said it plans to hire an outside professional services firm to assist in the liquidation sales of inventory.

"We are disappointed with this outcome, but the company's declining liquidity position and the extremely challenging retail environment, together with the fact that we have exhausted all other possibilities, requires that we take this action," chief executive officer John Goodman said in the release.

"Although we took a number of steps to improve our financial performance, we were unable to return the company to profitability."

Mervyns, a San Francisco-based department store, filed for bankruptcy on July 29 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 08-11586.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.