Mervyns is done in California

GLENDALE — Mervyns, whose three-story retail outlet has been a fixture at the Glendale Galleria for a quarter century, announced Friday that it will close its remaining 149 stores throughout California and the Southwest.

The move will not only affect the 101 S. Brand Blvd. location in Glendale but will also result in the closure of the Burbank store at 245 E. Magnolia Blvd., company officials said.

In a release, Mervyns Chief Executive John Goodman said the massive closure, expected to take place after the holiday season, comes amid increasing challenges to its operations after repeated attempts to keep its branches open.

“We are disappointed with this outcome, but the company’s declining liquidity position and the extremely challenging retail environment, together with the fact that we have exhausted all other possibilities, requires that we take this action,” Goodman said in a statement.

Mervyns has been on a downward spiral since at least 2005, when company officials began a series of 20 closures and restructurings in Oregon, Washington and Utah.

In July, Mervyns closed up to 10 more underperforming outlets in California as part of a “new strategic plan” that coincided with a declaration of bankruptcy.

Twenty-six more locations, including 11 in California, were put on the chopping block in August, while the Burbank and Glendale stores temporarily staved off closure as the company sought to save some sites.

The final blow came Friday, after the mid-level retail chain felt increasingly squeezed by upper-class fashion stores and lower-priced clothing outlets, and concluded that remaining in business had become untenable.

“Although we took a number of steps to improve our financial performance, we were unable to return the company to profitability,” Goodman said.

Store officials said the company will remain open through December to capitalize on holiday sales — and to coincide with liquidating its assets — and will likely close in January. That could affect up to 80 employees in Burbank, a store manager said.

Glendale store officials refused to comment.

The 90,000-square-foot Glendale Galleria Mervyns opened in 1983 as the 100th franchise in the chain’s 59-year history. It has anchored the sprawling complex of 250 stores as other retail chains in the area opened and closed, such as Linens-N-Things in August.

The fate of the Glendale and the Burbank location, which opened in the Burbank Town Center Mall 17 years ago, remains to be seen.

Still, retail officials remained upbeat about the future of their respective shopping centers, maintaining that the closure of Mervyns at both the Galleria and Town Center represents another opportunity to fill the space on a prime piece of real estate.

“We don’t ever want to see a retailer close its doors, but we see the vacancy as an opportunity to continue to bring in only the best in retail and entertainment,” Town Center spokeswoman Betsy Miringoff said.

Janet LaFevre, the Galleria’s senior marketing director, said multiple businesses — both retail and non-retail — have expressed interest in the site, though she would not confirm which ones or how many.

“We’re predominantly a retail establishment, but we look at all the options on the table,” she said, adding that possibilities could include a restaurant or another retail outlet to fill the void.

“It’s unfortunate that retailers don’t always survive,” she said. “But when you get the opportunity, you hope for something exciting and vibrant.”