The performance of the company over the last few years has been very erratic. It's also a smaller player. It was time for Milstein to take it easy and make a gigantic pot of money and turn the ball over to someone else.
Business died for a few days, you've got a ton of inventory, so what do you do? You turn lemons into lemonade and make the week after Christmas more important with super sales and promotions.
I think its a brilliant strategy. Make small improvements that will boost sales even 4 to 5 percent over the next few years and that could lead to a dramatic turnaround for the company,
Kohl's could be interested in buying a few of the Mervyn's stores as it expands its presence in the state.
If you are able to build a few stores that are successful and bring in a couple of million dollars each, the department stores will come to you and you can make a deal.