Report: Mervyn’s May File for Bankruptcy
New York City Hayward, Calif.-based Mervyn’s may be forced to file for Chapter 11 bankruptcy protection, perhaps as early as this month, The Wall Street Journal reported on its Web site on Sunday.
The company has been trying to persuade vendors to send shipments for the back-to-school season, but if they don’t agree, the chain may have no choice but to file for bankruptcy, the paper said in a report citing unnamed sources.
Some of Mervyn’s vendors have stopped shipping to the company, with its access to financing pulled by some key lenders, according to The Wall Street Journal.
A private investment group including Sun Capital Partners Inc, Cerberus Capital Management, Lubert-Adler and Klaff Partners LP bought Mervyn’s from Target Corp. in 2004.
CIT Group Inc. stopped providing financing to the retailer in the spring, according to the report.
The Journal said the chain’s private-equity buyers did not stand to lose much from a liquidation of the company because of the way they originally structured the deal.
Apple unveils first China store
BEIJING, China Apple unveiled its first store in China, set to open Saturday, July 19, at the Village at Sanlitun retail development.
The all-glass building has the same design as Apple’s other retail units and features Apple store staples, including a multi-lingual Genius Bar. The store will be Apple’s 219th retail store worldwide.
“This is the first of many stores we will open in China,” said Ron Johnson, Apple’s senior vp of retail, in remarks to the press. He also confirmed that another store will open in Beijing’s Qianmen area, a shopping street south of Tiananmen Square that has been renovated in anticipation of the Olympics.
Mattel reports 2Q net income drop
EL SEGUNDO, Calif. Mattel today reported a net income of $11.8 million, or 3 cents per share, for the second quarter of 2008, compared to last year’s net income of $22.8 million, or 6 cents per share, for the like period.
“We expected the positive contribution from toys tied to the summer entertainment properties Batman: The Dark Knight™, Speed Racer™ and Kung Fu Panda™,” said Robert A. Eckert, chairman and ceo of Mattel. “And we also achieved nice growth in several of our key core brands, including Fisher-Price Core and American Girl. International markets continue to lead the way, but the U.S. business also posted solid performance in the quarter.”