Mervyn's requests exclusivity extension to complete wind-down process

By Jennifer Lanning Drey

Portland, Ore., Nov. 10 - Mervyn's Holdings, LLC requested an extension to its exclusive periods to file a plan of liquidation and solicit votes on the plan, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company wants to extend the exclusive plan-filing period to Feb. 24 and the solicitation period to March 26. If granted, the extension would be the company's first since filing for bankruptcy on July 29.

In the motion, Mervyn's said the liquidation process is just beginning because the company had initially hoped to find potential investors or buyers.

Due to the negative effect of the current economic environment, Mervyn's was unable to find an investor or buyer and received court approval last week to hold final store-closing sales at its remaining stores, according to the motion.

The company said it recognizes that it could be administratively insolvent but said the administrative expense shortfall could be eliminated depending on the course of the liquidation.

Mervyn's noted in the filing that its debtor-in-possession lender has agreed to fund the wind-down process.

A hearing is scheduled for Nov. 25.

Mervyn's is a San Francisco-based department store. Its Chapter 11 case number is 08-11586.

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