Mervyns LLC, the bankrupt California retail chain, plans to close its remaining 149 stores and shut down after nearly six decades in business.The retailer will hold going-out-of-business sales during the holiday season to raise money for its creditors. The liquidation will be conducted under Chapter 11 bankruptcy law, Hayward, California-based Mervyns said today in a statement.
Mervyns, whose founder Mervin G. Morris opened his first store in 1949 in San Lorenzo, California, filed for bankruptcy protection in July, joining a dozen other retailers hurt by a slowdown in consumer spending. Mervyn's reported a $12.3 million loss in August and debt that included a $329 million credit line.
Morris expanded his original store 13 times before opening additional stores in 1964, according to the company's Web site. Mervyns went public in 1971, and in 1978 merged with Dayton Hudson Corp., now Target Corp. Mervyn's was sold to a private investment group in September 2004. The chain had 177 stores when it filed for bankruptcy. Bloomberg.com
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