Home / Knowledge / News / Mervyns' operations to continue…. Bankruptcy Court
Mervyns' operations to continue…. Bankruptcy Court
05
Aug '08
Mervyns, the leading mid-tier department store chain in California and the Southwest, announced that it and certain of its affiliates filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) to restructure the Company's debt and re-align its business operations.

The Company intends to work with its constituencies to execute its reorganization through Chapter 11. Mervyns stores will remain open and business will continue as the Company moves through the bankruptcy process.

“Mervyns needs to reorganize its finances and operations due to the state of the economy and difficult operating environment for our industry,” said John Goodman, Chief Executive Officer of Mervyns.

“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.

We are committed to serving our customers and maintaining regular operations as we undertake this reorganization.”

In conjunction with the filing, the Company has received a commitment for a $465 million debtor-inpossession (DIP) facility from a lender group led by Wachovia Capital Finance Corporation (Western) as agent.

Upon Bankruptcy Court approval, the financing, combined with operating cash flow, will be used to fund the Company's ongoing operations.

Mervyns will seek the Bankruptcy Court's approval for additional authorizations, including permission to continue paying employee wages and salaries and to provide employee benefits without interruption, among others.

During the Chapter 11 process, vendors should expect to be paid for post-petition purchases of goods and services in the ordinary course of business.

The Company has also asked for Bankruptcy Court permission to continue to honor its current customer policies regarding merchandise returns and outstanding gift cards and customer loyalty programs, so that the Chapter 11 process will not impact the Company's customers.

Goodman continued, “The decisive action we are taking provides the Company with the most effective means to restructure our operations, strengthen our balance sheet and position Mervyns to compete more effectively.

I want to thank our customers and vendors for their continued support during this process. We are pleased that, as we seek to restructure, we can continue to satisfy our customers' expectations by offering style, quality and excellent service all at great prices. In addition, we are grateful to all of our associates for their hard work, loyalty and dedication.

Our management team is committed to making this financial restructuring successful andleading Mervyns toward a bright future.”

Mervyn's LLC


Must ReadView All

Indian govt relaxes cabotage rule for cotton transport

Textiles | On 25th May 2018

Indian govt relaxes cabotage rule for cotton transport

The Government of India has relaxed cabotage rules for transportation ...

Courtesy: Westside

Apparel/Garments | On 25th May 2018

Tata Group to open 30 new Westside stores this fiscal

Trent Ltd, a part of Tata group company, has decided to expand its...

Courtesy: L Catterton Asia

Apparel/Garments | On 25th May 2018

L Catterton obtains 10% stake in Future Lifestyle Fashions

L Catterton Asia, the Asian unit of the global consumer-focused...

Interviews View All

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Mala Alwani

<div>Delhi-based fast fashion womenswear brand, Besiva, aims to bridge the ...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Anisha Chaudhari
Threads & Shirts

Threads &amp; Shirts is a freshly-tailored concept providing men/women a...

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


May 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search