Mervyns, which has been operating under Chapter 11 bankruptcy reorganization since July, has decided to liquidate and close all of its stores. The retailer has three stores in Tucson: 4510 N. Oracle Road in Tucson Mall, 3660 S. 16th Ave. in Santa Cruz Plaza and a stand-alone store at 5555 E. Broadway.
The 59-year-old chain’s remaining 149 stores will have close-out sales through the holidays.
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"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, Mervyns’ chief executive officer, in a statement.
The company, headquartered in Hayward, Calif., said it has been extremely hard hit by the tough economy with its September sales the weakest in more than three years.
A private investment group led by Cerberus Capital Management and Sun Capital Management purchased Mervyns from Target in 2004 for $1.2 billion. Mervyns has 175 stores in seven Western states.








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