Forever 21 Inc

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.

Retailers Forever 21 Inc. and Kohl's Corp. won a joint bid to move into 46 soon-to-be-empty Mervyns stores, the chains said Friday. Most of the locations are in California, where the mid-level department store chain had a strong presence for decades. The Hayward, Calif., company filed for Chapter 11 bankruptcy protection in July and subsequently decided to liquidate.

Surges of large-scale retail bankruptcies such as Circuit City electronics and Mervyns department stores altered the shopping landscape in 2009 -- and experts say 2010 is likely to bring even more changes. Amid a still-tepid economic recovery, big retail chains are expected to continue closing their less productive stores and retrenching on expansion plans. But at the same time, others will be hurtling into the breach to take advantage of falling rents and vacancies in neighborhoods they couldn't get into a few years ago. "The prediction for next year is more re-sizing and relocating of retailers," said real estate broker Richard Rizika of CB Richard Ellis.

The gig: Economist Sung Won Sohn, 66, is always in motion. He holds the Martin V. Smith professorship at Cal State Channel Islands in Camarillo, where he also directs the Institute for Global Economic Research. He's vice chairman of the board of clothing chain Forever 21 Inc., based in Los Angeles, and sits on the boards of Western Alliance Bank Corp. in Phoenix and Torrey Pines Bank in San Diego. And Los Angeles Mayor Antonio Villaraigosa recently appointed the Hancock Park resident to a five-year term on the commission overseeing the Port of Los Angeles.

California's unemployment rate held steady at 7.7% in September, remaining at its highest level in 12 years. Economists warned Friday that joblessness is likely to jump once October numbers are tallied. The new data from the California Employment Development Department reflect a continually weakening state economy buffeted by falling home prices, little construction activity, declining consumer demand and government belt-tightening.

As she readied for last night's prom, Jamie McGraw asked her friends for advice about hairstyles, shoes and a dress. She also turned to her cellphone for a little help. McGraw receives daily text messages from Seventeen magazine about fashion, including tips about what to wear to the prom. She planned to take the magazine's suggestion to wear a brightly colored outfit and be prepared for "dress malfunctions."

Beleaguered retailers announced plans to close stores, promised more bargain-basement prices and cut their earnings forecasts Thursday, signaling deals for shoppers but more trouble ahead for the country's deteriorating economy. Macy's Inc., one of the nation's largest department store chains, said it would shutter 11 stores across the country, including one of its two neighboring locations in downtown Los Angeles. Nordstrom Inc.

While many companies are firing staff, shelving renovation plans and pinching pennies, the owners of Raj Manufacturing in Tustin are expanding. The swimwear maker is betting that it can boost its market share while its competitors are cutting back -- and the hot sales of its daring Animal Instinct swimsuits seem to support the move. Other businesses are also growing.

Department store impresario Marshall Field's strategy in the late 19th century was as simple as it was sure-fire. "Give the lady what she wants." It helps, of course, to know what that is. As retailers face mounting pressure to cut costs, boost profits and tag trends, they also are searching for something a little more old fashioned: merchants who know what will sell. "This is the single biggest issue we face," Urban Outfitters Inc.

For years, Korean immigrants who prospered running garment shops, gardening services and other small businesses admired Won Charlie Yi as a savvy investor with special contacts. The 34-year-old money manager told clients he had an inside connection to Pacific Union Bank that would allow him to buy its stock at a discount, then deliver handsome profits when the shares rose in value, court filings say. And by all appearances, Yi was a success.