HAYWARD, Calif.–Mervyns could be the latest retailer headed for bankruptcy, as some vendors have stopped shipping the promotional department store chain and CIT Group cut off financing to the retailer, published reports said.
Sources told HFN that CIT would not approve vendor shipments.
One vendor said CIT, which acts as the supplier’s factor, deemed Mervyns financially unsound. As a result, CIT gave the retailer’s credit-worthiness a thumb’s down.
In 2004, Target Corp. sold the chain to private-equity firms Cerberus Capital Management and Sun Capital Partners, as well as three other partners.
Mervyns did not return calls by press time.