As expected, mall staple PacSun has officially filed for Chapter 11 bankruptcy. CEO Gary H. Schoenfeld took to the struggling retailer’s website this morning to confirm the news, stating that private equity firm Golden Gate Capital — whose portfolio also includes the likes of California Pizza Kitchen, Eddie Bauer and Payless ShoeSource — will indeed be taking control of the company as it becomes privately owned. Though PacSun has recorded losses every year since 2008 and has seen its shares plummet by about 90% in the past year alone (shares fell 78% and closed at $0.08 just the other day), it is currently not planning to close any stores (which numbered 613 as of December) and will operate as per usual while Golden Gate Capital reorganizes the company with the aim of sustained longterm success.
“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,” says Schoenfeld.
You can read the entirety of the CEO’s letter below.