“We are disappointed with this outcome, but the company’s declining liquidity position and the extremely challenging retail environment, together with the fact that we have exhausted all other possibilities, requires that we take this action,” Goodman said in a statement.
Mervyns has been on a downward spiral since at least 2005, when company officials began a series of 20 closures and restructurings in Oregon, Washington and Utah.
In July, Mervyns closed up to 10 more underperforming outlets in California as part of a “new strategic plan” that coincided with a declaration of bankruptcy.
Twenty-six more locations, including 11 in California, were put on the chopping block in August, while the Burbank and Glendale stores temporarily staved off closure as the company sought to save some sites.
The final blow came Friday, after the mid-level retail chain felt increasingly squeezed by upper-class fashion stores and lower-priced clothing outlets, and concluded that remaining in business had become untenable.
“Although we took a number of steps to improve our financial performance, we were unable to return the company to profitability,” Goodman said.
Store officials said the company will remain open through December to capitalize on holiday sales — and to coincide with liquidating its assets — and will likely close in January. That could affect up to 80 employees in Burbank, a store manager said.
Glendale store officials refused to comment.
The 90,000-square-foot Glendale Galleria Mervyns opened in 1983 as the 100th franchise in the chain’s 59-year history. It has anchored the sprawling complex of 250 stores as other retail chains in the area opened and closed, such as Linens-N-Things in August.
