Editing Mervyn's

{{short description|American department store chain}}
{{Infobox company
| name = Mervyn's
| logo = Mervyn's Department Store Logo.png
| type = [[Private company|Private]]
| fate = [[Chapter 7 Bankruptcy|Chapter 7]] [[Bankruptcy]] [[Liquidation|Liquidation Sale]]
| foundation = {{start date and age|1949|7|29}}<br>[[San Lorenzo, California|San Lorenzo]], [[California]], [[United States|U.S.]]
| founder = Mervin G. Morris
| defunct = {{end date and age|2009|1|1}} (original company)
| location_city = [[Hayward, California]]
| location_country = U.S.
| area_served = [[Western United States]]
| key_people = John Goodman (CEO, 2008)
| industry = [[Retail]]
| products = Clothing, footwear, jewelry, bedding, bath, furniture, beauty products, electronics, toys, and housewares.
| owner = [[Target Corporation]] (formerly Dayton-Hudson Corporation) (1978–2004)<br>[[Sun Capital Partners]] (2004–2009)<br>Unknown (2024 - Current)
| homepage = https://mervynsonline.com/
}}

'''Mervyn's''' was an American middle-scale [[department store]] chain based in [[Hayward, California]], and founded by Mervin G. Morris (1920–2021).<ref>{{cite news |last1=Swartz |first1=Angela |title=Mervin Morris, founder of Mervyns stores, Atherton resident dies at 101 |url=https://almanacnews.com/news/2021/09/10/mervin-morris-founder-of-mervyns-stores-atherton-resident-dies-at-101 |access-date=30 December 2021 |publisher=The Almanac |date=10 September 2021}}</ref> It carried national brands of clothing, footwear, bedding, bath products, furniture, jewelry, beauty products, electronics, toys, and housewares. Many of the company's stores were opened in [[shopping mall]]s; however, some locations were operated independently. Based on 2005 revenue, Mervyn's was the 83rd largest [[retailer]] in the [[United States]].<ref>[http://www.stores.org/pdf/06%20JULY%20TOP%20100.pdf Top 100 Retailers: The Nation's Retail Power Players (PDF)] {{webarchive |url=https://web.archive.org/web/20070808215354/http://www.stores.org/pdf/06%20JULY%20TOP%20100.pdf |date=August 8, 2007 }}, ''Stores'', July 2006.</ref>

In 2006, Mervyn's had 189 stores in 10 states.<ref>[http://www.mervyns.com/cust_serv/store_loc.aspx Mervyns.com Store Locator] {{webarchive|url=https://web.archive.org/web/20160304120320/http://www.mervyns.com/cust_serv/store_loc.aspx |date=2016-03-04 }}</ref> One year later, after Mervyn's closed its stores in [[Oregon]] and [[Washington (state)|Washington]], Mervyn's had reduced its store count to 177 stores in seven states. On October 17, 2008, the company announced that it would liquidate its assets through a Chapter 7 filing,<ref name="liquidate">{{cite news|url=http://cbs5.com/business/mervyns.chapter.7.2.842505.html|title=Mervyn's Stores Plan To Liquidate, Cease Operations|date=October 17, 2008|publisher=KPIX-TV (CBS 5)|access-date=2008-10-22|archive-url=https://web.archive.org/web/20081017193252/http://cbs5.com/business/mervyns.chapter.7.2.842505.html|archive-date=October 17, 2008}}</ref><ref>Sale Motion filed with the United States Bankruptcy Court, District of Delaware</ref> planning to close every remaining location by the end of the year. The Morris family bought back the intellectual property rights to the company in 2009 and announced plans to relaunch Mervyn's as an internet-based enterprise.<ref name="Future">{{cite web|url=http://cbs5.com/investigates/mervyns.name.comeback.2.933168.html |title=Morris Family Retakes Mervyn's Name, May Make Comeback |date=2009-02-11 |url-status=dead |archive-url=https://web.archive.org/web/20090415113410/http://cbs5.com/investigates/mervyns.name.comeback.2.933168.html |archive-date=2009-04-15 }}</ref> As of 2024, Meryvn's Department Store has returned as an online only store that specializes in selling closeout and overstock merchandise from other retailers.<ref name=":0">{{Cite web |title=Mervyns Department Store - A Brief History |url=https://mervynsonline.com/pages/about-us |access-date=2024-07-15 |website=Mervyns |language=en}}</ref>

== History ==
===Beginnings===
[[Image:1stMervynslogo.PNG|thumb|left|Final version of Mervyns' original logo, that was used from early 1962 until late 1994]]

Mervin G. Morris founded the first Mervyn's store in [[San Lorenzo, California]], on July 29, 1949. The store was supposed to be named ''Mervin's'', but a designer suggested that a spelling with a "y" instead of an "i" would be more visually appealing.<ref>{{Cite news|title=Mervyn's founder shares his story|work=East Bay Times|url=https://www.eastbaytimes.com/2005/07/16/mervyns-founder-shares-his-story|date=July 16, 2005}}</ref> Mervyn's was located in the midst of [[San Lorenzo Village]], a planned residential community between the cities of [[Hayward, California|Hayward]] and [[San Leandro, California|San Leandro]], composed of two- and three-bedroom [[tract home]]s built between 1944 and the 1950s. Mervyn's carved a niche for itself by having a relatively no-frills shopping environment that reduced [[Overhead (business)|overhead]], enabling the store to price merchandise lower than competing department stores. Mervyn's also offered significantly-discounted [[factory seconds]] of basics such as [[jeans]], [[T-shirt]]s, [[underwear]], and similar garments, as well as household linens, with flaws minor and undetectable by most. During the 1950s and 1960s, this made Mervyn's popular with the young suburban families comprising the majority of San Lorenzo's population. This marketing strategy was later abandoned before Mervyn's expanded beyond its original single location, but Mervyn's remained popular as a lower-priced alternative to national department store chains.

The second Mervyn's store opened about {{convert|15|mi|km}} south as an [[anchor tenant]] of the Fremont Hub Shopping Center, one of two [[regional malls]] in [[Fremont, California]], in 1962.

===Target years and expansion===
[[Image:Mervynslogo1990.jpg|thumb|right|Mervyns' logo used from 1994 to 2004.{{fact|date=August 2021}}]]

In mid-1975, Mervyn's operated stores in major cities and towns throughout California.<ref>Advertisement, ''Los Angeles Times'' (Orange County edition), Sept. 7, 1975, p.OC16.</ref>{{Better source needed|date=December 2021}}, and by October, it had expanded to [[Southern California]], opening stores in [[Fullerton, California|Fullerton]] and [[Huntington Beach, California|Huntington Beach]]. The location in [[Millbrae, California|Millbrae]] was particularly popular among [[San Francisco Peninsula]] customers searching for deals on off-season discount items.{{cn|date=December 2021}}

By 1978, the company had grown to a chain of more than 50 stores in three states,<ref>Emily Thornton, [https://www.bloomberg.com/news/articles/2008-11-25/how-private-equity-strangled-mervyns "How Private Equity Strangled Mervyn's"], ''Business Week'', November 26, 2008</ref> and Mervyn's was acquired by the [[Dayton's|Dayton-Hudson Corporation]] (now [[Target Corporation]]). Mervyn's kept its separate identity as a Dayton Hudson subsidiary. The average store had 80–130 employees. There was a Store Team Leader (1), Executive Team Leaders (2–4), Department Leaders (7–10), benefited team members (full-time employees not part of the leadership team), and part-time employees. All employees had "credit goals", which referred to the number of customers that opened a Mervyn's credit account. Part-time employees were expected one per every eight hours, and the leadership team was expected one per every 40 hours.

Mervyn's entered [[Florida]] in 1988 with a store at [[Lakeland Square Mall]] in [[Lakeland, Florida|Lakeland]], and began major expansions outside of California with [[Atlanta, Georgia|Atlanta]] being the site of a particularly strong expansion campaign, followed by [[Miami, Florida|Miami]] in 1991 with the conversion of five [[Lord & Taylor]] locations--[[Southland Mall (Miami)|Cutler Ridge Mall]] (1982), [[Coral Square]] (1984), [[Miami International Mall]], [[Boynton Beach Mall]] (both 1985), and [[Treasure Coast Square]] (1987). Mervyn's had not previously had a retail presence in the southern U.S., taking over a handful of [[Jordan Marsh]] sites in 1992 (along with a newly built store at [[Pembroke Lakes Mall]]). They also competed for mall space with [[JCPenney]], which later received top anchor spots at the [[Town Center at Cobb|Town Center Mall]] in [[Kennesaw, Georgia|Kennesaw]], [[Shannon Mall]] in [[Union City, Georgia|Union City]] (rebuilt as a DHL Distribution Center), and [[Gwinnett Place Mall]] in [[Duluth, Georgia|Duluth]] (now Beauty Master). Stores that were unaffected were those at [[North Dekalb Mall]] in [[Decatur, Georgia|Decatur]] that was taken over by [[Upton's]] ([[Burlington Coat Factory]] now occupies the store) and [[North Point Mall]] in [[Alpharetta, Georgia|Alpharetta]], which became [[Parisian (department store)|Parisian]] and was rebuilt as [[AMC Theatres]]. This was also likewise done at the same time in Florida where the company sold ten stores to [[Dillard's]], including the 5 aforementioned L&T stores, along with former JM boxes at [[Pompano Citi Centre|Pompano Fashion Square]], [[Westfield Broward|Broward Mall]], and [[Melbourne Square (mall)|Melbourne Square]] in [[Melbourne, Florida|Melbourne]], and 2 others (Lakeland Square and Pembroke Lakes), the latter three locations became "double headers" for Dillard's. The eight other Florida stores weren't included in the deal and were sold to other retailers. Mervyn's had withdrawn from both Miami and Atlanta in 1997.<ref>[http://atlanta.bizjournals.com/atlanta/stories/1997/04/07/story5.html Parisian to open in Mervyn's spot at North Point], ''Atlanta Business Chronicle'', April 4, 1997</ref> During the 1990s, Mervyn's also expanded into [[Arizona]], [[Colorado]], [[Texas]], [[Michigan]], [[Minnesota]], and [[Washington (state)|Washington]].

===Mervyn's California; sale from Target===
[[File:Mervyn's California logo.svg|thumb|left|Mervyn's California logo that was used from 1995 until early 2001.]]

From 1995 to 2001,<ref>{{cite news|title=Mervyn's: New California theme is intended to boost sales, profits|url=https://news.google.com/newspapers?id=47QpAAAAIBAJ&sjid=0fEDAAAAIBAJ&pg=6824,6020114&dq=mervyn's+california&hl=en|newspaper=The Spokesman-Review|access-date=8 June 2013}}</ref> the stores were rebranded as '''Mervyn's California''', in an effort to identify with its West Coast roots. A media campaign was launched to publicize the rebranding, with TV commercials and catalogs featuring former [[San Francisco 49ers]]' [[quarterback]] [[Joe Montana]]. The rebranding had little effect on the company's revenues, and the "California" was dropped from the name in 2001, reverting to the original name. The majority of their stores in Texas didn't even consider adding the "California" name to their stores.

In March 2004, Target Corporation announced that they planned to put the Mervyn's and [[Marshall Field's]] divisions up for sale to focus on Target stores. Target Corporation was approached by many buyers for both stores but many of the potential buyers saw value only in the real estate. Target refused to sell to the groups that wanted to purchase Mervyn's for the property value only. Target would only consider deals that would not close the company and put the then 30,000 employees out of work. 

The Mervyn's locations in Minnesota were closed in 2004 as part of the deal between [[Target Corporation]] selling their [[Marshall Field's]] division to [[The May Department Stores Company]] in June 2004.<ref>{{Cite web|title=10 Jun 2004, Page A1 - Star Tribune at Newspapers.com|url=http://startribune.newspapers.com/image/250303532/?terms=|website=Star Tribune (Minneapolis - St. Paul)|language=en}}</ref> May purchased 9 Twin Cities area Mervyn's locations along with the Marshall Field's stores, and immediately announced closure of those Mervyn's stores. Analysts saw this as a move by the May Company to block competition from acquiring those locations.
In July 2004, [[Target Corporation]] announced that Mervyn's had been sold to a group of investors that included private investment firm and turnaround specialist [[Sun Capital Partners]], [[Cerberus Capital Management]], and real estate investment company Lubert-Adler Management Inc. Rick Leto was named the new president and chief merchandising officer in January 2005.

===Store closures prior to bankruptcy===
[[Image:Mervyns california.jpg|thumb|right|An empty Mervyn's California store in [[Capitola, California]] (store #36).]]
[[Image:Mervyns 2.JPG|thumb|left|250px|A typical 1980s Mervyn's exterior storefront, this one being in [[Boise, Idaho]] (store #220).]]

Sixty-two store closures were announced by the new owners in September 2005,<ref>{{Cite web|title=Struggling Mervyns Will Close 62 Stores as It Slashes 4,800 Jobs |date=8 Sep 2005 |page=D2 |url=http://www.newspapers.com/image/650245995/?terms=mervyn%27s&match=1|access-date=2020-10-21 |website=The Sacramento Bee |via=Newspapers.com|language=en}}</ref> stating the 62 stores closed only accounted for 17% of the chain's sales. The closures comprised 28 of the 40 stores in [[Texas]], 15 stores in [[Michigan]], 10 stores in [[Colorado]], three stores in [[Oklahoma]], 3 stores in [[Louisiana]]; and one store closing in each state of [[Utah]], [[Oregon]], and [[California]]. Mervyn's had an enviable real estate portfolio, and it was believed they could further invest in those properties, and make themselves more competitive.

In 2007, an additional 18 stores were closed. Of the stores closed, 17 were in [[Oregon]] and [[Washington (state)|Washington]], and one in [[Grand Junction, Colorado]], which was the last remaining Mervyn's store in that state.<ref>{{cite web | publisher=The Daily Sentinel | title=Mervyn's prepares to close GJ store | url=http://www.gjsentinel.com/news/content/news/stories/2007/12/27/122807_1a_Mervyns.html | date=December 27, 2007 | access-date=December 30, 2007 }} {{Dead link|date=September 2010|bot=H3llBot}}</ref>

===Bankruptcy and store closures===
[[Image:Mervyns Irvine closure signs.jpg|thumb|right|375px|Mervyn's bankruptcy prompted the company to liquidate remaining store merchandise through dramatic clearance sales in late 2008, seen at this location in [[Irvine, California]] (store #194).]]
Signs of financial distress and possible bankruptcy surfaced on July 21, 2008, when the [[Associated Press]] reported that Mervyn's had stopped updating its financial status<ref>{{cite web | publisher=The Associated Press (via The Arizona Republic) | title=Mervyn's face financial squeeze | url=http://www.azcentral.com/business/articles/2008/07/21/20080721biz-mervynswoes21-ON.html | date=July 21, 2008 | access-date=July 21, 2008 }}</ref> and that the department store's vendors ceased shipping some products, hurting the store's back-to-school season sales efforts. In addition, financing requests were denied by lenders. This raised the possibility of the company having to file for [[Chapter 11, Title 11, United States Code|Chapter 11]] bankruptcy, or going out of business altogether.<ref>{{cite web | publisher=CBS MarketWatch | title=Mervyn's may be forced to file for Chapter 11: report | url=http://www.marketwatch.com/news/story/story.aspx?guid=%7B87ADA08B%2D332A%2D48A1%2DB162%2D9AAFBB707DF6%7D&siteid=rss | date=July 21, 2008 | access-date=July 21, 2008 }}</ref>

The company made no official comments at the time, but on July 29, 2008, Mervyn's announced that it had filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Northern District of California.<ref>{{cite web|title=Mervyn's Chapter 11 Petition|url=https://www.pacermonitor.com/view/NBYGJDQ/Mervyn's_LLC__debke-08-11587__0001.0.pdf|website=PacerMonitor|access-date=15 June 2016}}</ref><ref name="reuters.com">{{cite news | work=[[Reuters]] | title=Mervyn's says files for Chapter 11 bankruptcy | url=https://www.reuters.com/article/pressReleasesMolt/idUSWNAB327320080729 | date=July 29, 2008 | access-date=July 29, 2008 | first=Nicole | last=Maestri | archive-url=https://web.archive.org/web/20170922101531/https://www.reuters.com/article/us-mervyns-bankrupt/mervyns-says-files-for-chapter-11-bankruptcy-idUSWNAB327320080729 |archive-date=September 22, 2017|url-status=live}}</ref> Soon, the Chapter 11 case was converted to [[Chapter 7, Title 11, United States Code|Chapter 7 liquidation]] on October 17, 2008. At the time of this announcement 3 stores had just held grand openings only a few months prior to being told they would soon close.

Although the company initially vowed to keep all locations open during the reorganization efforts, the company announced in August 2008 the closure of all 26 underperforming stores.<ref name="bankruptclose">{{cite web|url=http://www.mervyns.com/aboutMervyns.aspx?id=1828|archive-url=https://web.archive.org/web/20160312052816/http://mervyns.com/aboutmervyns.aspx?id=1828|url-status=dead|archive-date=2016-03-12|title=Mervyn's announces select store closure as part of reorganization|date=2008-08-13|publisher=Mervyn's, LLC|access-date=2008-08-18}}</ref> The company hired an outside company to assist in the liquidation of assets from the stores affected.<ref name="bankruptclose"/> The closures also marked a complete retreat by Mervyn's from the [[Idaho]] market, whose sole store in [[Boise, Idaho|Boise]] was one of the ones marked for closure. In [[Texas]], a complete retreat was slated from [[San Antonio, Texas|San Antonio]], where all three remaining stores were marked for closure,<ref name="San Antonio">{{cite news|url=http://www.bizjournals.com/sanantonio/stories/2008/08/11/daily33.html|title=Mervyn's department stores exiting San Antonio|date=2008-08-14|publisher=Bizjournals.com|access-date=2008-08-28}}</ref> in addition to the closure of the sole stores in [[Lubbock, Texas|Lubbock]], [[Midland, Texas|Midland]], and [[Odessa, Texas|Odessa]].

After these closures, Mervyn's was left with about 150 stores: 16 in Arizona, 121 in California, three each in Nevada and New Mexico, seven in Texas and six in Utah.<ref name="bankruptclose"/><ref name="store count">{{cite web|url=http://www.mervyns.com/aboutMervyns.aspx?id=1352 |title=Mervyn's Company Backgrounder |date=2008-02-01 |publisher=Mervyn's, LLC |access-date=2008-08-28 |archive-url=https://web.archive.org/web/20080802202324/http://www.mervyns.com/aboutMervyns.aspx?id=1352 |archive-date=2008-08-02 |url-status=dead }}</ref>

In September 2008, Mervyn's sued the [[financial institution]]s involved in the leveraged buyout of the chain, alleging that the deal had stripped the retailer of its real estate assets, forcing it into bankruptcy.
Mervyn's said in the suit that Cerberus Capital Management and its partners had used the increased rent to finance the buyout.<ref>{{cite news | newspaper=[[San Diego Union Tribune]] | title=Mervyn's says files for Chapter 11 bankruptcy | url=http://www.signonsandiego.com/news/business/20081018-9999-1b18mervyns.html | date=October 8, 2008 | access-date=October 8, 2008 | url-status=dead | archive-url=https://web.archive.org/web/20081031225500/http://www.signonsandiego.com/news/business/20081018-9999-1b18mervyns.html | archive-date=October 31, 2008 }}</ref>

===Liquidation===
[[File:Mervyns headquarters Hayward.jpg|thumb|right|Mervyn's former headquarters, Hayward, not in use (2011); subsequently demolished]]

Although the company attempted to undergo reorganization under bankruptcy, Mervyn's ultimately succumbed to the ongoing [[Late 2000s recession|Great Recession]] and announced that it would liquidate its assets through Chapter 7 of Title 11 in the United States Code,<ref>Sale Motion filed with the U.S. Bankruptcy Court, District of Delaware.</ref> stating it "is the best course of action to maximize value for all of the company's creditors, employees and other stakeholders."<ref>{{Cite press release|title=MERVYNS COMMENTS ON COURT APPROVAL OF GOING OUT OF BUSINESS SALES|date=October 30, 2008|publisher=Mervyns|location=Hayward, CA|url=http://www.mervyns.com/AboutDetail.aspx?id=1958/|archive-url=https://web.archive.org/web/20081211134650/http://www.mervyns.com/AboutDetail.aspx?id=1958|archive-date=December 11, 2008}}</ref> The bankruptcy called for the company to liquidate and close its remaining stores.<ref name="liquidate"/> The announcement came amidst an offer by fashion retailer [[Forever 21]] to purchase 149 of the remaining Mervyn's stores for an undisclosed amount. The original negotiations failed, and Mervyn's liquidated all 149 stores under the bankruptcy action. Several months later, department store retailer [[Kohl's]] and Forever 21 prevailed in a joint bid at bankruptcy auction to take over the leases of 46 Mervyn's stores; Kohl's has assumed 31 stores, while Forever 21 has assumed 15 stores.<ref>{{ cite news | url=https://www.ocregister.com/2008/12/12/kohls-forever-21-take-over-mervyns-sites/ | title=Kohl's, Forever 21 take over Mervyn's sites | first=JULIE | last=GALLEGO | work=[[Orange County Register]] | date=December 12, 2008}}</ref>

In a [[KPIX-TV]] interview on February 11, 2009, Mervin Morris's son Jeff revealed that the family had bought the Mervyn's name and [[intellectual property]], including the company's customer list<ref name=Future/> as part of an effort to relaunch the company. Morris did not say when the website would launch or how much it would cost, only that decisions would be up to his sons. In 2009, the Mervyn's website was replaced with a single-page site allowing visitors to sign-up for a mailing list to receive updates about the future of Mervyn's. However, that page is no longer accessible, and the website no longer exists.{{update|date=February 2025}}

=== Online Only Store ===
As of 2024, Meryvnsonline has appeared as a website specializing in selling closeout and overstock merchandise from other retailers.<ref name=":0" />

==Legacy==
A private road into a shopping center parking lot where a former Mervyn's location used to be is still named Mervyn's Drive in [[Fullerton, California|Fullerton]], as a Mervyn's location was there prior to 2008.<ref>{{cite web|url=https://www.google.com/maps/place/Mervyn's+Dr,+La+Habra,+CA+90631/data=!4m2!3m1!1s0x80dd2a9f208babdb:0xd1ecb5230074a95d?sa=X&ved=0ahUKEwi20Y_0xN7ZAhUS-GMKHWeBDrUQ8gEIKDAA|title=Meryvn's Dr |website=[[Google Maps]]}}</ref> [[California Department of Transportation|Caltrans]] continues to maintain the traffic signal which connects the private road to [[California State Route 90|Imperial Highway]], and installed a new overhead sign with the name "Mervyn's Dr" in 2019 after the old one fell off. The former store is now a [[Floor & Decor]].

A private road into a shopping center parking lot in [[Bakersfield, California|Bakersfield]] is still named Mervyn's Place continuing the department store's legacy.<ref>{{Cite web |last=cedelhart@bakersfield.com |first=COURTENAY EDELHART, Californian staff writer |date=2008-08-22 |title=Local Mervyn's stores will remain open |url=https://www.bakersfield.com/archives/local-mervyns-stores-will-remain-open/article_798b57c7-88cb-563c-bf26-d549a4a606b1.html |access-date=2024-06-27 |website=The Bakersfield Californian |language=en}}</ref>

A minor road leading to a former location in [[San Jose, California|San Jose]] is named Mervyn's Way.

== See also ==
* {{Portal inline|San Francisco Bay Area}}
* {{Portal inline|Companies}}

== References ==
{{Reflist|33em}}

==External links==
* {{Commons category-inline}}

{{Hayward, California}}

[[Category:1949 establishments in California]]
[[Category:2009 disestablishments in California]]
[[Category:Clothing retailers of the United States]]
[[Category:Companies based in Hayward, California]]
[[Category:Companies that filed for Chapter 11 bankruptcy in 2008]]
[[Category:Companies that filed for Chapter 7 bankruptcy in 2008]]
[[Category:Companies that have filed for Chapter 7 bankruptcy]]
[[Category:Defunct companies based in the San Francisco Bay Area]]
[[Category:Defunct department stores based in the San Francisco Bay Area]]
[[Category:Online retailers of the United States]]
[[Category:Private equity portfolio companies]]
[[Category:Privately held companies based in California]]
[[Category:Retail companies disestablished in 2009]]
[[Category:Retail companies established in 1949]]
[[Category:Target Corporation]]