The extension of the leasehold review--to Feb. 23, 2009 from Nov. 25, 2008--was granted earlier this month by US Bankruptcy Judge Kevin Gross. This week, Gross was scheduled to sign off on the hiring of Hilco Hilco Real Estate LLC of Northbrook, IL to review Mervyn's leases and negotiate discounts with landlords where appropriate. Hilco is currently handling the going-out-of-business sales now occurring at 26 Mervyns locations.

In arguing for the extension of the leasehold review period, a transcript made available online last week lays out the reasons for Mervyn's request. The first is that Hilco, whose hiring was to be approved by the court late last week, has only recently begun its review process.

"The debtors need time to review the appraisals, to discuss it with the Committee and the banks, and to have Hilco engage in substantive discussions with the landlords," Mervyns' lawyers told the judge. "This process is large and time consuming and is unlikely to be completed by November of '08."