Mervyn's department store is no longer in business as of 2015, as the company closed and liquidated all of its stores in 2008 after filing for Chapter 7 bankruptcy. In 2009, John, Jeff and Jim Morris, the sons of the company's founder Mervin G. Morris, purchased the company's assets in bankruptcy court for approximately $162,000, including the Mervyn's name, online properties and intellectual property.Continue Reading
The brothers reformed the company on July 29, 2015, with the plans to relaunch the company as an Internet-based business. However, as of Oct., 2015, the company has yet to officially launch their new website.
Founded in San Lorenzo, California in 1949, Mervyn's was a midscale department store chain that sold a variety of clothing, furniture, electronics, housewares and other products from many national brands. In 1978, the company was purchased by Dayton Hudson Corporation, which would go on to become Target Corporation. In 2004, Target Corporation sold Mervyn's for $1.2 billion to an investment group in 2004, which included Cerberus Capital Management, Lubert-Adler Management and Sun Capital Partners.
These three private equity firms have been blamed for the company being forced to file for bankruptcy, as they stripped Mervyn's of its real estate assets, saddled it with $800 million in debt and took out more than $400 million in cash reserves from the company.Learn more about Internet & Networking