By Chelsea Emery

NEW YORK, July 29 (Reuters) - Retail credit rating service Bernard Sands LLC is telling its clients to not ship goods to department store chain Mervyns LLC.

Bob Carbonell, executive vice president and chief credit officer for Bernard Sands, said on Tuesday the service had taken this action because Mervyns had stopped giving him financial updates.

"Their chief financial officer, their treasurer were always available and provided information like clockwork," Carbonell said. "But I haven't heard from them since July 7."

Mervyns external spokesman Andrew Siegel, with public relations company Joele Frank, Wilkinson Brimmer Katcher said: "Mervyns has been working with its vendors and speaking to its lenders, and in the stores it's business as usual."

Privately owned Mervyns, based in Hayward, California, sells apparel and kitchen supplies. The Wall Street Journal, citing people familiar with the situation, reported on Tuesday that Mervyns was close to a seeking bankruptcy protection in the next few days. But Siegel said: "It is the company's policy not to comment on rumors and speculation."

Bernard Sands offers credit ratings, reports, payment data and scoring on publicly traded and private retailers in North America.

Other retailers have sought bankruptcy protection this year, including home goods chain Linens 'n Things.

Mervyns, which Target Corp (TGT.N: Quote, Profile, Research) sold in 2004 to a private investment group that included Sun Capital Partners, Cerberus Capital Management, Lubert-Adler and Klaff Realty LP, operates some 175 stores in seven states. Its website says that it sells one of every four pairs of Levi's 501 jeans bought in California. (Reporting by Chelsea Emery; editing by Toni Reinhold)