NEW YORK (MarketWatch) -- The tightening credit market has claimed the life of yet another retailer, with bankrupt department-store chain Mervyn's the latest to call it quits.

After exhausting all other options, Mervyn's, the 59-year old retailer in California and the Southwest, said it plans to hold "going out of business" sales during the holidays at all of its remaining 149 locations. The Hayward, Calif.-based company, which filed for Chapter 11 bankruptcy protection in July, said that it will offer deep discounts to drive traffic to its stores.