The future doesn’t look too bright for PacSun.
According to a report by Bloomberg, the California-based retailer is preparing to file for chapter 11 bankruptcy, following a slew of losses and decreasing sales during the past eight years.
Anonymous sources told the publication that the filing could take place as soon as next week; however, nothing has been solidified and it’s all subject to change. If the filing does occur, PacSun will follow in the footsteps of stores like American Apparel and Quicksilver, which both resorted to chapter 11 protection in an attempt to stay afloat last year.
Now it’s no secret the once-mighty retailer, which operates over 600 stores, has made big moves in an effort to regain its relevancy. We saw this a few years ago when PacSun tried to reinvent itself as something more than just a “mall store.” It introduced brands like Been Trill and Yeezus merch to its shelves; and, more recently, it rolled out a collaborative collection with Fear of God’s Jerry Lorenzo as well as one with Kendall and Kylie Jenner. But it seems even those weren’t enough to help the business.
According to Bloomberg, PacSun’s shares have fallen 90 percent within the last 12 months, and officials recently hired financial advisors to assist them with the store’s $160 million debt.
Stay tuned as more information comes through.