Mervyn's first exclusivity extension approved

By Caroline Salls

Pittsburgh, Nov. 25 - Mervyn's Holdings, LLC has been granted an extension to its exclusive periods to file a plan of liquidation and solicit votes on the plan, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company's exclusive plan-filing period was extended to Feb. 24 and the solicitation period to March 26. The extension is the company's first since filing for bankruptcy on July 29.

In the motion, Mervyn's said the liquidation process is just beginning because the company had initially hoped to find potential investors or buyers.

However, because of the negative effect of the current economic environment, Mervyn's said it was unable to find an investor or buyer and received court approval earlier this month to hold final store-closing sales at its remaining stores.

The company said it recognizes that it could be administratively insolvent, but it said the administrative expense shortfall could be eliminated depending on the course of the liquidation.

Mervyn's is a San Francisco-based department store. Its Chapter 11 case number is 08-11586.

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