Mervyn’s LLC announced today that it will cease operations and hold going out of business sales at all of its stores, making the bankrupt retailer the latest company to succumb to an economy that has deteriorated steadily in recent months.
Hayward-based Mervyn’s explored a sale of the company and a wide array of other options before making the abrupt decision to shut the company.
The going-out-of-business sales will be held during the upcoming holiday season, Mervyn’s said.
“We are disappointed with this outcome” said John Goodman, chief executive officer of Mervyn’s. “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.”
Mervyn’s had filed for Chapter 11 earlier this year and was attempting to reorganize its finances through the bankruptcy case.
