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Mervyns announces additional layoffs in Hayward

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Officials of Mervyns LLC, parent of the Mervyns department store chain, announced Tuesday it eliminated a ???significant number of jobs, including many unfilled positions,??? mostly from its Hayward headquarters.

Jobs were also eliminated in some of its stores and its distributions centers in Fremont and Ontario.

Roy Berces, group manager of communications for the retailer, which filed for Chapter 11 bankruptcy protection July 29, said he could not divulge the exact number of layoffs that took effect Tuesday. Layoffs occurred broadly across the company, including the finance, human resources, information technology, marketing and merchandising departments, as well as store operations.

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Last month, the company announced it would close 26 of its remaining 175 stores in California and neighboring western states no later than early November.

Since each store employs between 90 and 120 workers, anywhere from 2,340 to 3,120 could be laid off when the stores close, according to Berces. Stores in Livermore, Antioch, Fairfield and Napa are among those that will be shuttered.

Officials say the layoffs are a ???critical component of the company???s restructuring plan.??? Mervyns secured $465 million in funding from investors in August and has resumed paying its vendors.

???Decisions to reduce headcount are never easy -- this was as difficult as our announcement to close 26 stores in August,??? John Goodman, Mervyns LLC CEO, said in a statement. ???But we are confident that further cost reduction will put Mervyns in a better position to return to profitability. This is no reflection on the contributions, dedication and hard work of everyone affected today.???


© 2009 American City Business Journals, Inc. All rights reserved.

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