Mervyns To Liquidate Inventory, Real Estate

Hayward, CA, Oct. 20, 2008--Mervyns department store chain has confirmed a plan to close its remaining 149 stores  liquidate store inventory and real estate.

In the press release, Mervyns said it determined that holding going out of business sales during the holiday season is the best way to maximize value for its creditors.

"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,” said John Goodman, CEO of Mervyns.

According to CoStar Tenant, the typical Mervyn's is 65,000 to 85,000 square feet and serves as an anchor to regional malls.

Founded in 1949, Mervyns was acquired by Dayton Hudson Corp. (later known as Target) in 1978. In the late 80s, the retailer attempted to expand in the southeast (particularly in Atlanta and Florida) unsuccessfully, closing the stores by 1998. Mervyn's then turned its focus back to California and in late 2004 was sold to a private equity consortium including Sun Capital Partners, Cerberus Capital Management and real estate investment company, Lubert-Adler Management.