35 Mervyn’s to Be Sold or Closed

Dayton Hudson Corp. said it will sell or close 35 Mervyn’s department stores, including all of its stores in Florida and Georgia, resulting in a $134-million charge in the fiscal fourth quarter. None of the closures are in California. The Minneapolis-based retailer said it expects the sales to generate about $350 million in cash, which it will use to reduce debt. The move will leave Dayton Hudson with about 275 Mervyn’s stores, which have long struggled with poor sales and are seen by many analysts as a drag on the retail chain’s earnings. Shares rose $1.25 to close at $8.125 on the New York Stock Exchange. In Florida, Dayton Hudson will sell 10 stores to Dillard Department Stores Inc. and close the remaining eight. In Georgia, Dayton Hudson will sell three to J.C. Penney Co. and shutter four. Another 10 underperforming stores will be sold or closed in the rest of the nation.