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Mervyns to close 149 stores

By   /   Saturday, October 18th, 2008  /   Comments Off on Mervyns to close 149 stores

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After filing for Chapter 11 bankrputcy in July, the California retail chain Mervyns LLC announced Oct. 18 it plans to close its remaining 149 stores after nearly six decades in business. On the Central Coast, Mervyns maintains six stores in San Luis Obispo, Santa Maria, Lompoc, Ventura, Oxnard and Thousand Oaks.

Mervyns will have going-out-of-business sales during the holidays to raise money for its creditors, Hayward-based Mervyns officials said in a statement.

Mervyns founder Mervin G. Morris opened his first store in 1949 in San Lorenzo. The retail chain reported a $12.3 million loss in August and debt that included a $329 million credit line.

"Mervyns completed a thorough analysis of all available options, including a sale of the company,” the company said in the release.

Morris expanded his original store 13 times before opening additional stores in 1964. 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.

For more details, pick up a copy of the Oct. 24 Business Times.

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