Earlier this week it was reported that PacSun could be filing for chapter 11 bankruptcy. According toBloomberg, the company was facing a debt of around $160 million after shares dropped 90 percent within the last 12 months.
It was originally suggested that the official announcement wouldn't come until next week, but the California-based retailer took to its website this morning to publish a letter addressing the company's future.
In the message to its customers written by its CEO Gary H. Schoenfeld, PacSun confirms that it will be filing for chapter 11 protection. The company has reached an agreement with Golden Gate Capital in which it will become a privately owned company. It also states that its board of directors has approved a plan of reorganization to help the retailer gain long-term success.
At this time, PacSun is not planning to close any of its stores, and business will continue to run as usual. Customers will also be happy to know that the decision will not affect reward points earned through its loyalty program, gift cards, or return/exchange policy.
"We remain committed to providing our customers with the highest quality products and services. We are proud of our brands and believe we have the most relevant and coveted mix in the industry," Schoenfeld wrote.
PacSun's case is currently pending and the date for the first hearing has yet to be determined. You can read the entire letter below.
