Mervyns to Liquidate
Department store chain Mervyns LLC will announce Friday that it is filing for chapter 7 bankruptcy protection — which means the Hayward-based retailer must shut its doors and liquidate its inventory, sources told CBS 5.
Over the summer, Mervyns had filed for chapter 11 protection from its creditors in U.S. bankruptcy court for the District of Delaware. The company said at the time that it planned to continue business as usual while it reorganized.
The privately-held retailer, which has languished for several years, operates about 175 locations in seven states - but primarily in California.
Industry observers said the chain’s heavy concentration in California, which is among the states hardest hit by the housing crisis, had made a turnaround very hard.
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