Thursday, October 09, 2008

Forever 21 wants to buy Mervyn's stores

Forever 21, the Los Angeles based retailer of low-priced fashion merchandise wants to buy 150 Mervyn's stores and convert them into larger versions of their format. Current Forever 21 stores are in the 20,000 square foot range, most Mervyn's are at least four times that.
"Our vision has always been to get a bigger box," said Christopher Lee, senior vice president of Forever 21. "We've been looking at these assets for many years."
I have read that Forever 21 tried to buy Mervyn's when Target put it up for sale a few years ago.

Buying when the economy is in the pits can look like genius if it works out, so I wish them well, but you have to wonder if there is a bit of Steve & Barry-ism involved when you read this line:
Lee said the company hadn't decided yet what it would do with the stores if its offer is accepted, but it would probably convert many of them to the Forever 21 brand and close the rest.
Seems like having a plan might be a good idea.

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