Mervyn's sets bid procedures for store closing sale agent

By Caroline Salls

Pittsburgh, Oct. 20 - Mervyn's Holdings, LLC has set the bidding procedures for the selection of a liquidation firm to conduct closing sales for the company at all of its remaining stores, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

Although the company has received initial offers from potential liquidation agents, Mervyn's said it has not yet selected a stalking horse bidder.

If Mervyn's does select a stalking horse bidder, it will pay that bidder a 3% break-up fee and reimburse up to $2 million of its expenses if it is not the high bidder at auction.

Bids are due by noon ET on Oct. 27. The company has asked the court to schedule the auction for Oct. 28 and the sale hearing for Oct. 30.

Mervyn's, a San Francisco-based department store, filed for bankruptcy on July 29. Its Chapter 11 case number is 08-11586.

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