Mervyn’s, Bennigan’s Declare Bankruptcy

HAYWARD, Calif. — In more signs of a troubling economy for retailers, the respective parents of the Mervyn’s department store chain and Bennigan’s and Steak & Ale restaurants separately filed for bankruptcy protection Tuesday. Mervyn’s, based here, said it would continue to operate its 176 stores while restructuring its debt under Chapter 11. Mervyn’s is owned by hedge fund Cerberus Capital, which also purchased Albertsons stores in that retailer’s breakup. Plano, Texas-based Metromedia Restaurant Group, which operates Bennigan’s and Steak & Ale, reportedly closed all of its corporate stores Tuesday concurrent with a Chapter 7 filing which would allow it to liquidate assets.

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