Mervyns' credit approval for $40 million in orders has been withdrawn by CIT Group Inc.
CIT has been hit hard by the subprime mortgage crisis fallout, which forced the lender to sell assets and borrow $7.3 billion to repay debt and provide financing. The company posted a first-quarter loss, hurt by its home and consumer lending divisions, and cut its dividend 60 percent.
The pullback by CIT is the latest move by a lender to tighten credit for retailers. Last month Sears Holdings Corp., Talbots Inc. and Coldwater Creek Inc. all said that major lenders had stopped approving credit facilities.
Mervyns LLC, the Hayward, Calif.-based promotional department store chain, said none of its other major factors or vendors have pulled back lending.
"In fact, some of the factors have reached out to us to expand their business with Mervyns," said company spokesman Roy Burces.
Only one-fifth of Mervyns' business is supported through factors, and the company said it is comfortable with its liquidity position.
Mervyns last month named John Goodman, a Levi Strauss & Co. executive, to be president and chief executive officer. Rick Leto resigned in December after three years as ceo. Chuck Kurth, executive vice president and interim ceo, has taken on the mantle of chief administrative and financial officer,
The midtier retailer has cut 315 jobs and closed more than 80 locations.
Sun Capital Partners Inc. bought Mervyns in September 2004 with the help of Cerberus Capital Management LP and Lubert-Adler and Klaff Partners LP. It was previously owned by Target Corp.
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)
@heriethpaul and @gracebol have a moment on the @victoriassecret fashion show 2017. See every look from the runway on WWD.com. Link in bio. (📷: @giovanni_giannoni_photo) #wwdfashion #victoriassecret #VSFashionShow
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia