Mervyns said on Tuesday that it had filed for Chapter 11 bankruptcy protection, Reuters reports.
The department store chain said the “state of the economy and difficult operating environment for our industry,” led to filing, Reuters reports. Mervyns stores will remain open as it works through the bankruptcy process.
Mervyns said it has received a commitment for a $465 million debtor-in-possession facility from a lender group led by Wachovia Capital Finance Corp., Reuters reports.
Mervyns, based in Hayward, Calif., operates more than 177 “family friendly” stores in seven states located primarily in regional malls, community shopping centers, and freestanding sites. The store provide a mix of national brands and exclusive private labels.
Jewelry and watch brands carried by the retailer include: Armitron, Citizen, Disney, Guess, Relic, Seiko/Pulsar, and Timex.