The extension of the leasehold review--to Feb. 23, 2009 fromNov. 25, 2008--was granted earlier this month by US BankruptcyJudge Kevin Gross. This week, Gross was scheduled to sign off onthe hiring of Hilco Hilco Real Estate LLC of Northbrook, IL toreview Mervyn's leases and negotiate discounts with landlords whereappropriate. Hilco is currently handling the going-out-of-businesssales now occurring at 26 Mervyns locations.

In arguing for the extension of the leasehold review period, atranscript made available online last week lays out the reasons forMervyn's request. The first is that Hilco, whose hiring was to beapproved by the court late last week, has only recently begun itsreview process.

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