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Pacific Sunwear Has 'Retailer's Dream' as Bankruptcy Wraps Up | Tony Seruga
Sep
06

Pacific Sunwear Has ‘Retailer’s Dream’ as Bankruptcy Wraps Up

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  • California clothier used Chapter 11 to cut debt, stay open
  • Reorganized company will be owned by Golden Gate Capital

Pacific Sunwear of California Inc. won court approval to exit bankruptcy after cutting debt, closing some stores and pressuring landlords to reduce rent at the malls where the teen-clothing chain does business.

“That’s every distressed retailer’s dream,” Poonam Goyal, a retail analyst with Bloomberg Intelligence said in an interview. But whether Anaheim, California-based PacSun can succeed is unclear, Goyal said. Most retailers in the U.S. have too many stores and need to cut back, she said.

PacSun tried to do just that before it filed for bankruptcy in April, closing hundreds of stores and reversing a failed expansion strategy…

Pacific Sunwear Has ‘Retailer’s Dream’ as Bankruptcy Wraps Up

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