Story Published:
Jan 16, 2006 at 1:18 PM PST
Story Updated:
Aug 31, 2006 at 1:11 AM PST
HAYWARD, CALIF. - Mervyns LLC said Monday it will close 20
stores in three states by next year, affecting more than 1,400
positions, as the struggling retailer aims to improve its profits.
The stores are in Washington, Oregon and Salt Lake City. All are
to be closed by February 2007.
Last September, the Hayward-based company announced it was
closing 62 stores in eight states. That process is expected to be
completed by next month.
The company will shutter 13 low-volume department stores in
Washington state, six stores in Oregon and one store in Salt Lake
City. The move will allow Mervyns to concentrate its investments on
existing and new store locations in its profitable core markets in
the West and Southwest, the company said.
"Exiting the underperforming markets of Oregon and Washington
will allow us to make investments that better serve our customers
and Mervyns' future," said Vanessa Castagna, executive chairwoman
of Mervyns' board. "We are confident that these decisions are
right for Mervyns' future growth and success, and are consistent
with the strategy that we announced in September 2005."
A company spokeswoman said 221 full-time and 659 part-time jobs
will be lost in Washington; 100 full-time jobs and 383 part-time
jobs will be lost in Oregon; and 15 full-time and 38 part-time jobs
will be lost in Salt Lake City.
Mervyns has been steadily losing market share to more nimble
competitors for years. Frustrated with the chain's meager returns,
Target Corp. sold Mervyns last year for $1.65 billion to a group of
investors that includes Sun Capital Partners, Inc., Cerberus
Capital Management LP and Lubert-Adler and Klaff Partners LP.