Mervyns Announces New Store Openings and E-Commerce Initiative

HAYWARD, Calif., May 19 /PRNewswire/ -- Mervyns, the leading mid-tier
department store chain in California and the Southwest, today announced its
plans to open five new store locations, sell certain other store locations,
and launch an e-commerce Web site.
Mervyns said it plans to open five new stores in its core markets in 2009.
This brings the total number of new Mervyns stores to 17 since the company was
acquired by its private equity owners three years ago, and reflects its
commitment to maintaining a dominant real estate position in California and
the Southwest. Concurrently, Mervyns reported it has engaged DJM Realty, LLC,
one of the nation's leading real estate advisory firms, to sell 5-10
underperforming, but high real-estate-value, stores. The real estate
portfolio transition is expected to generate $25 to $50 million in cash to
fund operations and new growth initiatives.
The Company also announced it will launch a fully integrated e-commerce
Web site in the fourth quarter of 2008. Mervyns said the e-commerce Web site
presents a new growth vehicle and multi-channel opportunity for existing and
new customers nationwide, and forecasts that the online platform could quickly
grow into a $50 million business. Mervyns will partner with a nationally
recognized provider of turnkey order entry and fulfillment services in
launching its Web site.
These initiatives are the latest elements of a new strategic plan, crafted
by new CEO John Goodman. Goodman joined Mervyns in April from Levi Strauss &
Co., where he was president of the Dockers(R) brand.
"We have a plan that centers around our consumer and her needs, and we are
putting the capital and people resources behind it to not only overcome the
current difficult retail climate, but to gain market share and reinvigorate
the Mervyns brand," said Goodman."
Goodman also is focusing the Company on providing products and services
for key niche markets, especially for Mervyns Hispanic customers. In
addition, Mervyns will enhance community outreach efforts consistent with the
Company's heritage as a neighborhood department store. This will be
accomplished through strategic hires, investments in store-level staff
training, as well as targeted sourcing and buying.
"We are leveraging our base of strong merchandising talent and bolstering
it with new team members both from within the department store channel, as
well as other categories and specialty brands, to bring a new look to
Mervyns," said Goodman. "We have the plan and are in a strong financial
position, and we have adequate liquidity to invest into this downturn to
recapture the loyalty of value-conscious shoppers."
About Mervyns
Mervyn's LLC, headquartered in the San Francisco Bay Area, is a
family-friendly promotional neighborhood department store offering trend-right
fashions and home decor for the entire family at affordable prices. Mervyns
has a well-earned reputation for its extensive selection of national and
private-label fashions and housewares. Community giving has been a
cornerstone of the company's business since 1949, with a focus on improving
the lives of children and families by giving back to its communities by way of
volunteerism and through its award-winning ChildSpree(R) program. Mervyns has
177 locations in seven states, and has a dominant real estate position in
California and other markets in the Southwest. For more information, go to
www.mervyns.com.
SOURCE Mervyns

Jeff Lambert or Tara Powers, both of Lambert, Edwards & Assoc.,
+1-616-233-0500; Roy Berces of Mervyns, +1-510-727-5729