Mervyns has received approval from the U.S. Bankruptcy Court for $465 million in interim financing after the department store chain filed for Chapter 11 bankruptcy protection this week. Mervyns says the financing will be used to continue operations and to pay vendors as it restructures under Chapter 11. The Hayward-based department store chain operates about 175 stores primarily in California.
The interim financing will be provided by Wachovia Capital Finance.
Mervyns filed for bankruptcy on Tuesday in Delaware federal court. According to court documents, Mervyns listed liabilities and assets of $500 million to a $1 billion each, with Levi Strauss & Co. as its largest unsecured creditor.
