NEW YORK Department store chain Mervyns has received court approval to begin its going-out-of-business sales, and its liquidators are ready to start clearing out its stores on Friday.
"The sales start tomorrow morning," said Jim Schaye, chief executive officer of Hudson Capital Partners, one of the firms that will help run the liquidation.
Hudson Capital is working with Great American Group LLC, SB Capital Group LLC and Tiger Capital Group LLC to run the sales, which will take place at Mervyns remaining 149 locations.
A number of retailers, including home goods company Linens 'n Things and department store chain Boscov's, have filed for bankruptcy protection this year as higher food and fuel prices, job losses, and a crumbling housing market forced consumers to cut back on spending.
But the recent tumult in financial markets, flagging consumer confidence and cautious lenders means some of these retailers are finding they must liquidate their business and close their doors, instead of being able to restructure their operations.
Mervyns' liquidators estimate inventory valued at about $900 million will be sold during the going-out-of-business sales.
Schaye said he expects to clear through the inventory in the next eight weeks, leading right until Christmas.
"What better time to run a store closing sale?" Schaye said.
(Reporting by Nicole Maestri; Editing by Lincoln Feast)