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.