Originally Posted By SingleParkPassholder <a href="http://www.marketwatch.com/news/story/mervyns-announces-plan-hold-going/story.aspx?guid=%7BAC9BBCE4-ABAC-40E0-B689-4BC47FF8CBDE%7D&dist=hppr" target="_blank">http://www.marketwatch.com/new...ist=hppr</a> Mervyn's is a regional retailer primarily located in California and the Southwest. Up until four years ago they were owned by Target, who bought them in the 70's. They had been in Chapter 11, but nothing was working out. No article I've seen has mentioned exact numbers, but my conservative guess is that this puts about 15-20,000 people out of work. When they filed BK they had 177 stores and were done to 149 when this was announced.
Originally Posted By Sport Goofy We have too many retailers in America. There just isn't demand for all of these store. However, Mervyn's was also the victim of a wall street scheme. A private equity firm bought them from Target several years ago and then siphoned off all of their real estate assets in a deal that ended up saddling the chain with greatly increased rent payments. Meanwhile, the private equity firm walked away with a ton of cash. They won't lose a cent of that cash in bankruptcy proceedings, but all the creditors and people employed by Mervyn's will lose their money and jobs.
Originally Posted By mele The Mervyn's in my town closed a couple of years ago. We were surprised it lasted as long as it did. It was always a ghost town. Actually, that's not true...it was packed on the day after Thanksgiving when they gave out free crap. Other than that, it was pretty deserted.
Originally Posted By Lisann22 From my cousin last night to several family members... <<<Well, tomorrow morning my facility has been scheduled for a meeting to announce the latest news on Mervyn's "reorganization". But before we could hear the "official announcement" there was a mass exodus today leaving our HQs building in XXXXX; because rumor has it that tomorrow Mervyn's is filing Chapter 7 bankruptcy act which means liquidation which means no wages or accrued vacation, (much less severance) will be paid any workers. I've been using my vacation so I only have a few days in the til so no big deal. But what the "rumor mill" explained was that our hopes had all been built on an offer from a "new buyer" for our company; we have quite a few current owners and a major holder wanted 24 million more than was offered. Because of that hold out we will be out of business after 59 years. So, many management executives quit today so they could get their accrued vacation paid to them while we're still in business. One couple, our XXXXX and her husband walked out with over 100 thousand dollars in vacation money owed them. My manager, who has about 20 thousand dollars did not quit and will get nothing tomorrow when we're all let go. I was preparing for the worst and hoping for the best, but in this case I guess the Lord has other plans for us. I've got some money saved and should be OK for a few months, but I will at least have to work part-time until I'm old enough to draw from my 401K plan (59 and a half). I'm hoping I can face what tomorrow brings and hold my head up high (without crying). This will be a sad day for me but I have to hear the "real facts" from our CEO. I've never been out of work before and never collected unemployment. I've worked for the same company for almost 34 years. Please pray for our poor country's economic woes.>>>>
Originally Posted By wonderingalice Wow... I've always liked Mervyn's. One near us closed very recently, but I thought it was due to the location of the shopping center (none of the stores there are busy because the area is fairly new). Good, positive thoughts from me to your cousin, Lisa... This is such a hard time for so many people. *Hugs*
Originally Posted By fkurucz << One couple, our XXXXX and her husband walked out with over 100 thousand dollars in vacation money owed them. >> Nice. $100,000 in accrued vacation pay. More than most folks earn in a year. I can only imagine what their salaries were.
Originally Posted By SingleParkPassholder "We have too many retailers in America. There just isn't demand for all of these store." That's a curious statement. Retailing has done nothing but shrink the last several years, eliminating choices for consumers. Here in Southern California, in the last 20 years, we've lost high end retailers such as Buffum's Robinson's, May Company, The Broadway and Bullock's. Some of those places were in business close to 100 years. All we're really left with is Macy's and Nordstrom. Sears was swallowed up by K-Mart of all companies, and JC Penney and Kohl's, with the demise of Mervyn's, is all that's left of the mid-level stores. At the discount end we have Target and Wal-Mart. Besides less choices for the consumer, it really does make it that much harder for people to get work through school, a part-time job or something to supplement retirement. I don't see where the shrinking of stores is a good thing at all.
Originally Posted By jdub Wow--in my community, Mervyn's just built & moved into a new building. I don't know about the fewer choices comment above, though; the relatively-new Kohl's is a near-carbon copy of 'vyn's--to the point that's where I thought I was the first time I walked into one. I think this chain could well have been the one of the final nails in the Mervyn's coffin.
Originally Posted By DAR <<though; the relatively-new Kohl's is a near-carbon copy of 'vyn's>> Kohl's dominates here then again it should Senator Herb Kohl started up the place.
Originally Posted By Sport Goofy << Retailing has done nothing but shrink the last several years, eliminating choices for consumers. Here in Southern California, in the last 20 years, we've lost high end retailers such as Buffum's Robinson's, May Company, The Broadway and Bullock's. Some of those places were in business close to 100 years. All we're really left with is Macy's and Nordstrom. Sears was swallowed up by K-Mart of all companies, and JC Penney and Kohl's, with the demise of Mervyn's, is all that's left of the mid-level stores. At the discount end we have Target and Wal-Mart. >> You've left out all the Big Box stores like Best Buy, Bed Bath Beyond, etc. that have been barfed up in every suburban strip mall across the country. We have no need for stores of this magnitude.
Originally Posted By Kar2oonMan >>Wow--in my community, Mervyn's just built & moved into a new building.<< I think we're neighbors, jdub. I live about a mile from that location. I think that store opened in Sept., built brand new, and was to be the anchor for that little strip mall's rebuilding. Now it will be vacant? Just too bizarre.
Originally Posted By jdub >>Kohl's dominates here then again it should Senator Herb Kohl started up the place.<< He should have pushed for an earmark to provide for at least minimal punctuation.
Originally Posted By Kar2oonMan We have no need for stores of this magnitude.<< Long ago, in a galaxy far, far away, cities had their very own retail dept. stores. Sure, there were Sears all over, and JC Penney, and Montgomery Wards. But there were all these local & regional retail dept. stores, such as McDonalds (not the food chain), Goldman's, Roos Atkins. It meant when you went to a different town, it "felt" different there. Now, San Diego doesn't look all that different from Denver as far as retail options go. And when one of these big chains goes down (nationwide Levitz Furniture went away last year), think about how far the ripple effect travels... In addition to the employees losing their jobs, print and broadcast advertising dollars are lost, hurting newspapers, magazines, TV, radio. Whatever community dollars the stores gave out are gone (and mervyn's was VERY generous in support of community groups through the years). Suppliers are impacted, and surrounding smaller businesses that are adjacent to the bigger retailers get hit. It's bad news all around.
Originally Posted By Kar2oonMan Yes, K2--and the Rasputin's will STILL be gone! << I miss that store a lot! I wonder how many times we've crossed paths, neighbor? ; )
Originally Posted By SuperDry <<< Here in Southern California, in the last 20 years, we've lost high end retailers such as Buffum's Robinson's, May Company, The Broadway and Bullock's >>> Wow - those names sure bring back memories! And I remember some of the consolidation steps along the way, such as "Robinson's May".
