As expected, Mervyns has filed for bankruptcy protection. The good news, at least, is that the firm is not planning any store closures yet.
The Hayward-based, low-end retailer, which employs more than 1,000 at 10 stores in San Diego County, said it intends to keep all its stores open and conduct business as usual as it seeks to reorganize.
“Mervyns needs to reorganize its finances and operations due to the state of the economy and difficult operating environment for our industry,” chief executive John Goodman said in a prepared statement.
The privately held retailer operates about 175 locations in seven states, but primarily in California. According to court documents, Mervyns listed liabilities and assets of $500 million to $1 billion, with Levi Strauss & Co. as its largest unsecured creditor.