LOS ANGELES — Troubled Mervyns confirmed reports on Friday that CIT Group Inc. has stopped approving about $40 million in credit on merchandise orders and that some small vendors have stopped shipping.
"For the most part our vendors are still delivering, and CIT has a liquidity crisis of its own," said a spokesman for the Hayward, Calif.-based retailer. "We were affected earlier by the economic downturn and if you look at the situation for all of California, it's been hard for retailers."
CIT, a large specialty lender that has been hit hard by the subprime mortgage fallout, stopped approving credit last month for about $40 million worth of orders to the struggling retail chain. CIT, one of the apparel industries largest lenders, shut its home lending operations last summer and reported a $134.5 million loss in the second quarter. Calls to CIT were not returned.
Mervyns, which has an average store footprint of 80,000 square feet in its 175 units, has scaled back inventory in response to the economic downturn and current circumstances, but the spokesman said the chain has adequate stock — tens of millions of dollars worth of merchandise — for the upcoming fall season.
"We do have a plan we will execute in terms of what we are offering our customers and how best we can serve them and meet their needs," he said.
Mervyns was sold by Target Corp. in 2004 to Cerberus Capital Management LP and Sun Capital Partners Inc. This spring, the company brought in turnaround specialist John Goodman, formerly of Levi Strauss & Co., as chief executive officer.
In April, Mervyns announced 350 layoffs in two distribution centers and, in May, set two store closings because it wasn't able to renegotiate leases. The firm, which employs about 20,000 workers, said it plans to sell five to 10 underperforming stores with high real estate value, but also expects to open five stores next year.
My character, Dinah Madani, is just the coolest, [most] badass woman imaginable," says @amberroserevah. The actress stars in @marvel's newest series on @netflix, @thepunisher. To prepare for her role, Revah sat down with Homeland agents to get a real sense of with Dinah's day-to-day life is really like. Read our full interview on WWD.com. #wwdeye (📷: @jilliansollazzo)
A scene from the 91st annual @macys Thanksgiving Day Parade. The parade, which boasts 50 million TV viewers and 3.5 million on-site spectators, is considered one of the largest and most watched parades in the world. (📷: Jason Szenes/EPA-REX)
The circus came to @bloomingdales 59th Street on Tuesday night and lit up Lexington Avenue with acrobatic dancers, death-defying knife throwing, sword swallowing and aerial acts with no net. The 45 minutes of theatrics built up to unveiling the holiday windows depicting @swarovski crystal-encrusted circus pieces and scenes from “The Greatest Showman” – songs from the soundtrack included. See the rest of the photos on WWD.com #wwdfashion (📷: Joshua Scott)
The psychedelic fashion that pervaded the ’60s is back with an exhibit at the @museumofcityny. “Mode New York: Fashion Takes a Trip” chronicles the changing styles from 1960 through 1973 and features designers such as @ysl, @oscardelarenta and more. The exhibition, which is on display through April 1, is organized into four periods: First Lady Fasion, Youthquake, New Bohemia and New Nonchalance. Pictured here is model Pat Bardonella during the Garvey Day Parade in 1968. (📷: @kwamebphoto) #wwdeye #wwdfashion
“People should be a lot more honest in expressing both the dark and light of themselves. We need to give each other the space to do that because it’s the only way we can grow and evolve,” says @noelwells of her new film “Mr. Roosevelt,” which is largely based on her own struggles. Unexpectedly leaving @nbcsnl in 2014 after just one season, Wells felt set back in her self-esteem and career trajectory. She quickly refocused her energy to more personal projects, which led to the completion of “Mr. Roosevelt.” Read the rest of WWD’s interview with the “Master of None” actress on WWD.com #wwdeye (📷: @jilliansollazzo)
@barbrastreisand is giving fans a chance to see her perform up close in a new concert series, which makes its debut on @Netflix today. From behind-the-scenes takes to her concert performance in Miami last December, the two-hour streaming special captures Streisand in her element. Pictured here is the singer/actress photographed for WWD in 1963. (📷: Palmieri Tony) #wwdeye #wwdarchive
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)