Mervyn's Confirms Liquidation

October 17, 2008 10:13:08 PM PDT
The Bay Area based department store chain, Mervyn's, announced it will sell-off remaining inventory and shut down all 149 remaining stores. That includes eleven stores in the central valley.Clearance signs and going out of business posters alerted Fresno shoppers of Mervyn's liquidation sale. Many people were there for the deep discounts, but were stunned by the news.

Fidela Gutierrez said, "I'm kind of shocked. Now I'll have to figure out somewhere else to go. No one has the same prices in our area, everyone else seems to be higher."

Mervyn's filed for Chapter 11 Bankruptcy protection in July, but was hit hard by the further slump in the economy.

Marketing Psychologist Kit Yarro said, "What happened is that Target really trounced them in terms of satisfying a consumer need. At the same time the economy has made discounters so much more appealing to all consumers. Mervyn's has been positioned between discounters and department stores and you know there isn't really a place for Mervyn's anymore."

On its website, Mervyn's CEO John Goodman made this statement: "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."

The closure of Mervyn's is the latest sign of the deteriorating retail economy. On Tuesday, Linens n' Things announced liquidation of its stores, including this store at River Park in north Fresno.

Pam Mighaccio said, "It's frightening when you think this is just the beginning and more and more corporations will close down at least that's how it looks right now."

Mervyn's executives have not said when the stores will close for good, or what will happen to company employees.

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