Mervyns files for Chapter 11 bankruptcy

Department store chain Mervyns LLC filed for Chapter 11 bankruptcy protection on Tuesday.

The Hayward, Calif.-based chain, along with certain of its affiliates, filed for protection from its creditors in U.S. bankruptcy court for the District of Delaware.

It said that all of its stores will remain open and business will continue as the company reorganizes.

The privately held retailer, which had been languishing for several years, operates about 175 locations in seven states, primarily in California.

NEW YORK

Bennigan’s seeking Chapter 7 bankruptcy

Restaurant chains Bennigan’s and Steak & Ale have filed for Chapter 7 bankruptcy protection and stores owned by its parent company will shut their doors.

The companies owned by privately held Metromedia Restaurant Group of Plano, Texas, filed for bankruptcy protection on Tuesday in the Eastern District of Texas, less than two months after Metromedia said it was not preparing to do so.

In a Chapter 7 bankruptcy filing, a company seeks to liquidate its assets and shut down.

ATLANTA

Delta Air Lines raising baggage fee

Delta Air Lines Inc., the nation’s third-largest carrier, will double its charge for checking a second bag on a domestic flight as part of a set of fee increases to help offset the high cost of fuel.

The Atlanta-based carrier said Tuesday that the changes will apply to customers who purchase a ticket on or after Thursday for travel on or after Aug. 5.

Fee changes include an increase from $25 to $50 to check a second bag for domestic travel. Fees for specialty items that require special handling, such as surfboards or ski equipment, will increase on domestic and international flights, Delta said.

NEW YORK

Home price drop in May steepest ever

Home prices tumbled by the steepest rate ever in May, according to a closely watched housing index released Tuesday.

The Standard & Poor’s/Case-Shiller 20-city index dropped by 15.8 percent in May compared with a year ago, a record decline since its inception in 2000.

The 10-city index plunged 16.9 percent, its biggest decline in its 21-year history.

From wire reports