Mervyns Gets Financing Approval, Store Closing Sales Started

Mervyns started Wednesday its store closing sales, beginning with 26 Mervyns stores in California, Arizona, Texas, Nevada and Idaho as part of the reorganization process. The 26 stores will close by late October or early November.

Over $130 million of inventory is being offered with discounts of 20 to 50 percent on all merchandise in the closing stores.

The debtor-in-possession (DIP) financing was approved by the Delaware Bankruptcy Court with the support of the Creditors' Committee, and all objections were resolved or withdrawn.

The financing and cash generated from operations will be used to continue to pay vendors and employees, as Mervyns proceeds with its restructuring, the company said in a statement.