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Struggling retailer PacSun filed for bankruptcy today, as part of an agreement with Golden Gate Capital to transition PacSun into a privately owned company.
In a press release, PacSun CEO Gary Schoenfeld emphasized that customers wouldn’t be affected by the company’s restructuring process and all 600 PacSun stores nationwide will remain open without interruption. The filing won't affect employees in the short term.
But the New York Times reports that PacSun is expected to use its Chapter 11 bankruptcy to try to reduce its high store occupancy costs, either by shrinking its store footprint or renegotiating its rents.
These have been tough times for teen retailers that enjoyed a '90s/'00s heyday. That other California mall surfwear brand, Quiksilver, filed for bankruptcy in September 2015. Wet Seal also filed for bankruptcy last year and is now trying to pivot back to its California roots.
PacSun (formerly known as Pacific Sunwear, which those who once bought Roxy tees there will remember) has been trying to keep up with teens today as well. The retailer teamed up with Kylie and Kendall Jenner for a multi-season collaboration line, for example.