Mervyns to liquidate

So much for trying to reorganize the business. Directors of the Hayward-based department store chain, now in bankruptcy protection, have determined that a going-out-of-business sale during the holiday season offers the best chance to pay up creditors. After that, the business will wind down and its 149 stores will close, including locations all over Socal. This is quite a turnabout from plans laid out in August to only close 26 stores. Of course, a lot of stuff has gone down since August. CEO John Goodman calls it a day in this statement:

I want to thank the many talented Mervyns associates for their outstanding efforts. Although we took a number of steps to improve our financial performance, we were unable to return the company to profitability. We appreciate the hard work and loyalty of our store associates, whose continued assistance we will rely upon during our going out of business sales.

On Tuesday, Linens 'n Things, which filed for bankruptcy protection in May, said it would begin liquidation sales at its stores as early as this week after failing to find a buyer. You can be sure many more retail closings are on the way. (AP)