Well-known apparel retailing company filed for bankruptcy
Posted on Friday, April 22nd, 2016 at 10:59 pm
Pacific Sunwear of California, Inc. (PacSun) recently filed for Chapter 11 bankruptcy in order to possibly solve two of their biggest financial issues caused by continuous annual losses for nine years straight, an April 8 article of CBS News reported.
Reports stated the company, which has nearly 600 stores across 50 states including North Carolina, suffered financial losses as many of their customers switched to online shopping and as well as rapid changes in fashion tastes of teenagers. PacSun CEO and president Gary Schoenfeld is hoping to continue their operations by sustaining the $140 million annual occupancy cost and their long-term debt worth $90 million. As part of the restructuring process, Golden Gate Capital will give PacSun additional capital worth $20 million and to convert some of their debts into equity. One of PacSun’s competitor, Quicksilver has also filed for bankruptcy.
Filing for bankruptcy can seem like a moment of defeat. However, the results may prove to be advantageous when working with a lawyer as entrepreneurs find themselves regaining financial stability. Find out how a Raleigh lawyer of the Bradford Law Offices, PLLC may work for you today by calling (919) 758-8879.