The mid-market retailer based in the San Francisco Bay area will see about 4,800 employees affected by its plans to focus its energies on markets where it is most profitable. The 62 under-performing stores targeted for closure represent about 25% of the company’s store base, but account for just 17% of sales. Mervyns will also close two distribution centers, one in Plano, Texas, and another in West Valley, Utah.

Mervyns, which was acquired from Target Corp. in September 2004 by an investment consortium including Sun Capital Partners, Inc., Cerberus Capital Management, L.P. and Lubert-Adler and Klaff Partners, L.P., plans to increase its investment in existing store operations, information technology and infrastructure in California, Washington, Oregon, Idaho, Nevada, Utah, Arizona, New Mexico, and parts of Colorado and Texas.

The retailer plans to exit the Mich. and Okla. markets by February 2006, as well as parts of Colo., La. and Texas. They will also close three stores, one each in Southern California, Oregon and Utah. 1,200 full time and 3,600 part-time positions will be affected.