Pacific Sunwear of California, Inc. announced on April 7,
2016 that it and all of its subsidiaries (collectively, "PacSun" or the
"Company") have entered into a restructuring support agreement (the "RSA") with
affiliates of Golden Gate Capital ("Golden Gate Capital"), the holder of its
secured term loan provider under the Company's financing facilities. In
conjunction with the RSA, a Plan of Reorganization (the "Plan") was approved by
the Company's Board of Directors, which provides a comprehensive roadmap for the
Company to continue to execute its strategy and position the Company for
long-term success as a privately owned entity by Golden Gate
Capital.
The parties intend to implement the Plan through a Chapter
11 process. To that end, PacSun filed voluntary petitions to
restructure under Chapter 11 of the United States Bankruptcy Code (the
"Bankruptcy Code") in the United States Bankruptcy Court for the District of
Delaware (the "Bankruptcy Court"). Under the Plan, PacSun will continue to
operate its business without interruption to customers, vendors, partners and
employees.
PacSun intends to operate its business as usual throughout
the Chapter 11 restructuring process. All PacSun stores nationwide will remain
open on normal schedules and are continuing to operate in the ordinary course.
According to the companies press release, the Chapter 11 filing should have no
immediate impact on PacSun’s employees and customers.
Pacific Sunwear of California, Inc. and its
subsidiaries is a leading specialty retailer delivering Best Brands, Great
StyleTM through its unique 34 year heritage at the center of California
lifestyle. The Company sells a combination of branded and proprietary casual
apparel, accessories and footwear designed to appeal to teens and young adults.
As of April 7, 2016, the Company operates 593 stores in all 50 states and Puerto
Rico.
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