Vendors cautious on shipping Mervyns
July 23, 2008,
New York – A range of home textiles suppliers contacted by HTT have described a wait-and-see situation in regard to shipping goods to struggling mid-tier retailer Mervyns, which itself is keeping mum.
Most of the suppliers indicated to HTT they have halted shipments sometime between May and this week.
The vendors in some cases said payment and credit terms offered by Mervyns were not acceptable. Some, under confidentiality agreements, were informed by Mervyns of specifics of its financial condition.
None of the vendors contacted by HTT would go on the record.
Press reports in the Wall Street Journal, The New York Post and elsewhere have indicated that Mervyns is under pressure from its lenders. The retailer is majority-owned by Sun Capital Partners, which along with Cerberus Capital Management led the private buyout of Mervyns from Target Corp. in September 2004.
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