Pacific Sunwear of California Inc. is preparing to file for bankruptcy next week, according to news reports.
The Anaheim-based teen apparel and accessories retailer didn’t file its fourth quarter financials in March as anticipated.
The 611-store chain in December posted an operating loss of about $12.5 million on $568 million in sales over the first nine months of its fiscal year, and its stock price—currently trading at about 9 cents—has fallen about 90% over the past 12 months. The company’s market value is about $7 million.
PacSun recently hired Washington, D.C.-based restructuring firm FTI Consulting Inc. and investment bank Guggenheim Securities in New York to deal with $160 million in debt due at the end of the year.
The retailer took out a $100 million credit line in 2011 from Wells Fargo Bank, N.A. The credit line is scheduled to mature in December. It had used all but $22 million of that by October.
A $60 million term loan funded by an affiliate of Golden Gate Capital is also due in December.
