PacSun's Bankruptcy Woes Take Another Turn as Auction for Its Assets Is Cancelled

What’s next for the California surfwear brand?

By
Fashion
3,773 Hypes 0 Comments

Surfwear brand PacSun filed for bankruptcy protection earlier this year after revealing a fourth-quarter loss of $10 million USD. In the months following the announcement, the company had planned to auction off its assets on June 22 to a “higher bidder and better offer” than what private equity firm Golden Gate Capital had set for its reorganization. Unfortunately, the cancellation means that the San Francisco-based firm will acquire PacSun since no bids were offered by the June 15 deadline. The terms also mean that Golden Gate Capital will have a 100% ownership of the company.

The Orange County Business Journal also reports that Wells Fargo Bank is involved to provide $100 million USD in “debtor-in-possession” financing. Other PacSun problems include trying to reduce costs on store leases, which are said to total around $140 million USD per year.

It will be interesting to see what happens to the popular mall store as it slowly reorganizes itself under new ownership.

Read Full Article
Source
Biz Journals

Join Our Discussions on Discord

The HYPEBEAST Discord Server is a community where conversations on cultural topics can be taken further.

100 Users Online

What to Read Next

Let Master Sushi Chef Masa Takayama Teach You How to Craft a Summery Cocktail
Food & Beverage

Let Master Sushi Chef Masa Takayama Teach You How to Craft a Summery Cocktail

A neon-green jalapeño ja.

LeBron's Post-Game 7 Return to Instagram Ensured These Hats Sold out in a Heartbeat
Fashion

LeBron's Post-Game 7 Return to Instagram Ensured These Hats Sold out in a Heartbeat

Roll with the King.

Trillectro Music Festival 2016 Lineup Features Kid Cudi, Rae Sremmurd, Lil Uzi Vert, GoldLink, Esta, and More
Music 

Trillectro Music Festival 2016 Lineup Features Kid Cudi, Rae Sremmurd, Lil Uzi Vert, GoldLink, Esta, and More

Trillectro Music Festival’s 2016 lineup is finally here, and HYPETRAK is proud to bring it to you first.


Beyoncé Releases Vigorous New Music Video for "Sorry"
Music

Beyoncé Releases Vigorous New Music Video for "Sorry"

Serena Williams drops in for a cameo.

ASICS Channels the Aesthetic of Retro Runners for the GEL-Lique
Footwear

ASICS Channels the Aesthetic of Retro Runners for the GEL-Lique

ASICS dips into the archives for its latest silhouette.

Fresh 'Suicide Squad' Footage Revealed in New "Heathens" Music Video
Entertainment

Fresh 'Suicide Squad' Footage Revealed in New "Heathens" Music Video

twenty one pilots drops the first music video from the movie’s soundtrack.

More ▾
 
Subscribe to our Newsletter

Gain access to exclusive interviews with industry creatives, think pieces, trend forecasts, guides and more.

By subscribing, you agree to our Terms of Use and Privacy Policy.

Help us serve you better

We appreciate your support in allowing HYPEBEAST ads, where we can share contents from the latest fashion, to those culturally relevant. In adding HYPEBEAST to your ad blocker's whitelist, ads on our sites will show while you continue to browse.