July 30, 2008
Mervyn’s, which is headquartered in Hayward, CA, has filed for Chapter 11 Bankruptcy. Under Chapter 11, the debtor (Mervyn’s) can continue to operate while it works out a plan to pay its debts and sort through its financing. It’s supposedly working on a finance package being arranged through Wachovia which would allow it to fight for its survival.
Mervyn’s has indicated that intends on closing about a dozen stores, but hasn’t identified those yet. This has been a tough year for mall owners as a number of retailers (Sharper Image, Linens & Things, Steve & Barry, etc.) have been victims of the weak economy.
Unless things turn around for Mervyn’s, it seems as though filing Chapter 11 is just a stop on the way to Chapter 7.
- Mervyn’s to Liquidate and Close; 3000 Northern California Employees Affected
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