PacSun

About PacSun

Pacific Sunwear, known as PacSun, filed for Chapter 11 bankruptcy on April 7, 2016. The teen apparel retailer had 600 stores. Golden Gate Capital provided 20 million in debtor in possession financing and converted debt into equity. PacSun emerged from bankruptcy in September 2016. The company had been struggling with declining teen spending and competition from fast fashion retailers. PacSun continued operating under private ownership. The bankruptcy was a prepackaged restructuring where creditors agreed on terms before filing. The case illustrates how retailers can use Chapter 11 to reduce debt and close underperforming stores while continuing operations. PacSun remains focused on California inspired youth fashion.