As we suspected earlier this week, ’90s mall staple Pacific Sunwear – known as PacSun to all the cool kids – has announced it’ll be filing for Chapter 11. Don’t start your teary farewell speech just yet – the company has a restructuring plan already in place to avoid liquidating its inventory, and will keep stores running throughout the process.
PacSun filed for bankruptcy early on Thursday morning, with an announcement outlining the restructuring support agreement the company will be putting into place with the help of equity firm Golden Gate Capital, the company’s secured term loan provider. As a result of the plan, PacSun will become a privately owned company.
The company’s board of directors also approved a reorganization plan, which will give PacSun a ”comprehensive roadmap” for the company to ”continue to execute its strategy” and position it for ”long-term success as a privately owned entity by Golden Gate Capital.”
”The plan negotiated with Golden Gate Capital and approved by our Board of Directors places PacSun in a very promising position as we continue the brand and merchandising transformation that our team has worked relentlessly to achieve,” Gary H. Schoenfeld, President and Chief Executive Officer said in a statement.
As the bankruptcy process proceeds, PacSun will stay in business without interruption to customers, vendors, partners, and employees, and there won’t be any impact on brands the company sells, or its inventory, at least, for now.
”During this process, we intend to operate business as usual with no plans at this time to close any stores,” Schoenfeld wrote in a letter to customers posted online today. ”All PacSun stores nationwide will remain open on normal schedules and continue to operate in the ordinary course without interruption.”