HAYWARD, Calif.–Mervyns declined comment on reports that the retailer is headed for bankruptcy.
The promotional department store chain would also not confirm whether or not vendors have stopped shipping the retailer.
“The company does not comment on rumors or speculation,” a spokeswoman said.
Sources told HFN that factoring firm CIT would not approve vendor shipments.
“The company is always in discussions with its vendors and lenders,” the spokeswoman said.
However, another insider said the retailer is evaluating its options, including a Chapter 11 filing.