PacSun Plans On Filing Chapter 11 Bankruptcy
The Anaheim-based company has reported losses every year since 2008.
Anaheim-based PacSun is preparing to file for Chapter 11 bankruptcy next week, according to Bloomberg.
The retailer, which operates 613 stores around the United States, has been a casualty of sluggish retail spending and shifting consumer tastes. Younger shoppers, PacSun’s target demographic, have been moving to shop at fast-fashion retailers, like H&M, Forever 21 and Zara, and discount retailers, like TJ Maxx, Ross Stores and Marshalls.
PacSun has tried to revive sales over the last few years by launching exclusive collections by celebrity designers, including Kendall and Kylie Jenner. However, the company has reported losses every year since 2008. The company posted an operating loss of about $12.5 million on $568 million in sales over the first nine months of its fiscal year in December.
Bankruptcy proceedings could be set into motion as early as next week, but no specific details are known. PacSun’s stock price has plunged about 90 percent in the past 12 months, closing at 8 cents on Tuesday.
Originally posted 2016-04-05 13:41:56.