Mervyns to liquidate remaining stores
The ailing department-store chain is the latest to fall as the weakening economy takes its toll on retail sales. Store closings could prove a blessing for holiday shoppers, however.
After 59 years in business, the Mervyns department-store chain called it quits Friday -- promising a huge going-out-of-business sale just in time for the holidays.
And there is plenty of competition for a close-out Christmas. Linens 'n Things Inc. began a liquidation sale Friday, and Shoe Pavilion Inc. starts one this weekend, according to firms that said they were hired to liquidate the stores.
Already gone are the novelty retailer Sharper Image Corp., Wickes Furniture and Levitz Furniture, and retail experts say more closings loom.
"This is unprecedented, really, the number of stores that are going to be closing," said Daniel Kane, principal of Tiger Capital Group, one of several firms hired to liquidate Linens 'n Things and Shoe Pavilion. "There's going to be a tremendous amount of bargains out there."
As the economy's decline continues to batter Main Street, shopping centers and strip malls across the nation are becoming home to empty storefronts among the holiday decorations. On Wednesday, the government announced that retail sales had slumped the most in three years.
What are seen as frightening developments for retailers could prove a blessing for shoppers as the gift-giving season approaches. Bargains galore duel with a sense of loss for many old favorite stores.
Some shoppers Friday were looking for deals at the Mervyns in the Glendale Galleria, where sale signs blanketed the racks and tables.
Joann Mendez said she was taken aback by all the discounts, such as half price for KitchenAid spatulas, spoons and other utensils or the 75% off Pierre Cardin men's shirts.
The 34-year-old Sun Valley resident said it was a wonder Mervyns hadn't closed earlier.
"I'm not surprised, considering how the economy is," Mendez said. "But it's too bad, since the store's been around so long."
She then looked at the purse and blouse she had picked up and pondered some liquidation calculus: Should she come back another day when the prices might drop further? Or would the item be gone for good?
Meanwhile, sale signs were plastered across a Linens 'n Things in Burbank. They caught the attention of Julie Alcantar from across the street. Not long after, she exited the store with two cartloads of purchases totaling $800.
"This was a bonus, a pleasant surprise," said Alcantar, 47, of Sun Valley.
The shuttering of Mervyns represents another blow to Southern California's long-declining department-store scene.
- Mervyns face financial squeeze Jul 22, 2008
- Mervyns to close 26 stores Aug 14, 2008
- Mervyns, a California retail fixture, files for bankruptcy Jul 30, 2008
