Bankrupt Mervyn's Goes Belly Up

Mervyn's will be closing all of its 149 stores before the end of the year and holding huge going-out-of business sales, the Bay Area's Daily Review reports. The California-based department store chain filed for bankruptcy in July and had been fruitlessly scrambling for a sale or a deal with landlords and creditors that would keep it alive. More than 3,000 jobs will be lost in the Bay Area alone.

A statement from Mervyns' CEO blamed the demise of the 59-year-old chain on the "extremely challenging retail environment" and said all other possibilities had been exhausted. Retail analysts said the company's mix of quality and discount items had failed to secure it a niche in recent years, and things worsened after the low-to-middle-income shoppers it targeted were hit hard by California's slumping economy.
(More bankruptcy stories.)