Sun Capital-backed Mervyns to liquidate

Department store Mervyns, bought in 2004 by Cerberus Capital Management and Sun Capital Partners for $1.2bn, will liquidate after filing for bankruptcy protection in July.

Bankrupt private equity-backed department store Mervyns plans to liquidate its business and wind down operations after failing to return the company to profitability since filing for Chapter 11 in July.

California-based Mervyns will hold liquidation sales at its remaining 149 locations and auction off the store leases. The company determined that going out of business sales during the holiday season would best maximise value for company creditors.