PacSun Gets Court Approval To Exit Bankruptcy With More Than 500 Stores In Tow
After five months of restructuring, Pacific Sunwear of California received court approval to exit bankruptcy this week.
While under Chapter 11 protection, PacSun has cut debt, closed some underperforming stores and pressured mall landlords to reduce rents for its teen-clothing stores. The retailer filed for bankruptcy in April after closing hundreds of stores and scaling back in an attempt to reverse the effects of a failed expansion plan, Bloomberg reports.
The retailer entered bankruptcy with roughly 590 stores, and closed from 10 to 20 locations while reorganizing. S.F.-based private equity firm Golden Gate Capital will take over all of PacSun's stocks, and has agreed to invest $20M into the company—likely in the form of new debt. [Bloomberg]