Mervyns Holdings LLC said Friday it will liquidate its merchandise and auction its store leases, Reuters reports.
The privately held department store chain, which sells clothing and home goods, said it will hold going out of business sales at all of its remaining 149 locations, Reuters reports.
The Hayward, California-based retailer said it hoped selling off its assets during the holiday season would maximize the amount of money it has to pay off creditors.
“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,” Mervyns’ chief executive John Goodman (pictured) reportedly said in a statement.
Mervyns filed for bankruptcy in July, at which time it had 177 stores in seven states, employed about 18,000 people and had annual revenue of about $2.5 billion.
The privately held retailer previously announced plans to close only 26 stores by late October or early November and cut about 1,700 workers as it restructured.
A U.S. bankruptcy court gave approval in August for a $465 million debtor-in-possession financing facility, to be led by Wachovia Finance Capital Corp.