In July of 2008 Mervyn's department stores filed for Chapter 11 bankruptcy and reduced its number of stores, eventually filing for Chapter 7 bankruptcy in October of that year. The company liquidated all of its assets to pay off its pending debts, sold its remaining stock and merchandise to equity firms, and closed all of its stores across the country.Continue Reading
Mervin G. Morris founded Mervyn's department store in San Lorenzo, California, in 1949, selling merchandise at a lower cost to customers due to the store's uncomplicated presentation methods. Over time, it opened more stores, primarily in California, and expanded across the country, leading to a chain of nearly 200 stores in 2006. The company continued to sell a wide range of products, including clothing for men, women and children, home goods, furniture, and toys. During the economic downturn of the early 2000s, the store began to experience lower sales, culminating in significant financial issues.
In 2008, the company filed for Chapter 11 bankruptcy, which allows the business to stay open while sorting out debts, in an attempt to reorganize its business structure and earn more time, planning to continue operations in the long-term. However, by the end of the year, the company filed for Chapter 7 bankruptcy, which required the business to use all of its available resources to avoid penalties from failure to pay debts, leading to the company closing all of its stores.Learn more about Corporations