In filing for Chapter 11 bankruptcy protection, Hayward, Calif.-based Mervyns blamed the "state of the economy and difficult operating environment for our industry."
"After careful consideration of available alternatives, the company's management board determined that a Chapter 11 filing was a necessary and prudent step that allows us to operate our business without interruption as we seek to restructure our debt and other obligations in a controlled, court-supervised environment," John Goodman, Mervyns chief executive, said in the statement.
The company said in its filing that it had identified a "limited number" of unprofitable stores that should be closed, but it didn't divulge the locations.
The filing came on the anniversary of the company's founding by Mervin Morris.
"Fifty-nine years ago this very day we opened the first store and it was a huge success," Morris, 88, said Tuesday. "A huge success means we took in $1,500, and I thought I died and went to heaven. And today is a very sad day for me."
The department store chain is now owned by Sun Capital Partners Inc., a Florida investment firm that was part of the group that acquired Mervyns from Target Corp. in 2004 for $1.2 billion.
In its bankruptcy filing, the company said it had implemented a turnaround plan early this year to set itself apart from competitors and improve its sales.
But that plan bumped up against external economic factors, including the decline in the housing market and the tightening in the credit markets, which affected consumer spending and ultimately "led to a precipitous decline in the debtors' profitability and liquidity," the filing said.
It also said that Mervyns assets and debts both fall between $500 million and $1 billion; a company spokesman declined to elaborate.
Fans of the store said they like its prices and regularly scan its weekly ads in search of bargains.
"I'm in here trying to save them," Carol Surface, 53, of Beverly Hills said Tuesday at the Westchester store. "I told my husband last night, 'I just might cry if Mervyns goes out of business.' "
But Robin Leishman, an architectural designer from Woodland Hills, said that Mervyns was not her first choice for shopping, even though she could "always find what I need here."
"I prefer going to Target, only because it's a better atmosphere," said Leishman, 53.
