Mervyns Shuts its Doors

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The Hayward, California-based Mervyns department store chain, battered by financial troubles, has announced that it is going out of business, according to the Associated Press.

The 59-year-old retail chain will close permanently after Christmas-season liquidation sales at its 149 stores in 10 states.

"Although we took a number of steps to improve our financial performance, we were unable to return the company to profitability," CEO John Goodman said.

Mervyns filed for bankruptcy protection in July in an effort to work through its debts, but executives said they found no way out.

Goodman cited the company's "declining liquidity position and the extremely challenging retail environment."

The impact will be mainly on entry-level workers, said Jeff Rowe, director of the Stanislaus Alliance Worknet, which assists job seekers.

"It ends up being really tough on teenagers who need some income to support themselves and their families, people who are working for the first time and people who are trying to get off public assistance," he said.

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