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The
Anaheim-based retailer listed assets in the range of $50 million
to $100 million, and liabilities of between $100 million and
$500 million, according to a court filing.
Pacific Sunwear said private equity firm Golden Gate Capital had
agreed to convert more than 65 percent of its debt into equity
of the reorganized company and provide a minimum of $20 million
in additional capital.
Golden Gate Capital had lent PacSun about $60 million in 2011.
PacSun also listed sportswear maker Nike Inc <NKE.N> and mall
operator Simon Property Group Inc <SPG.N> among its top
creditors.
The company owes Nike $5.7 million and Simon Property $3.8
million for occupancy charges.
Among PacSun's top investors are investment firm GI2 Ltd, which
owns a 28.6 percent stake, and Adage Capital Management LP with
a 14.1 percent stake.
PacSun said it would continue to operate all of its 600 stores
and does not expect the bankruptcy filing to have an immediate
impact on employees.
The company also said it had a debtor-in-possession credit
agreement of $100 million with Wells Fargo Bank.
In a separate filing, subsidiary Pacific Sunwear Stores Corp
listed assets of $100 million to $500 million and liabilities of
$100 million to $500 million.
PacSun, which sells the Kendall and Kylie Jenner clothing line,
has been able to report a profit only once in the past six
quarters, as intense competition from fast-fashion retailers and
online rivals has led to slower sales growth.
Rival Aeropostale said in March it was exploring strategic
alternatives, including a sale.
PacSun said fourth-quarter sales rose 0.5 percent to $232.9
million.
The case is in the United States Bankruptcy court, District of
Delaware, Case No: 16-10882.
The company's shares fell 11 percent to 8 cents in premarket
trading. The stock had fallen 96.6 percent in the past 12 months
as of Wednesday's close.
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