Pacific Sunwear Gets $160 Million in Financing Amid Closings
Pacific Sunwear of California Inc. (PSUN) received $160 million in financing and plans to shut as many as 24 percent of its stores as the teen-apparel retailer works to return to profitability.
The financing consists of a $100 million revolving credit facility from Wells Fargo & Co. (WFC) and a $60 million senior secured term loan from Golden Gate Capital, the Anaheim, California- based retailer said in a statement today.
Chief Executive Officer Gary Schoenfeld will shut the 175 to 200 stores in the next 14 months as the retailer tries to snap a string of 13 straight quarterly net losses. The company today reported its third-quarter net loss widened to $17.6 million from $6.96 million a year earlier.
Pacific Sunwear rose 28 percent to $1.73 at 4:32 p.m. in New York. The shares had declined 75 percent this year through the close of regular trading today.
Golden Gate, based in San Francisco, has previously invested in or made loans to Zale Corp. (ZLC), California Pizza Kitchen Inc. and Eddie Bauer Holdings Inc.
To contact the reporters on this story: Ashley Lutz in New York at alutz8@bloomberg.net.
To contact the editor responsible for this story: Robin Ajello at rajello@bloomberg.net
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