The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
ANAHEIM, United States — Struggling surfwear chain Pacific Sunwear of California Inc is preparing to file for bankruptcy, Bloomberg reported late on Monday, citing people with knowledge of the situation.
The company's shares fell as much as 70.4 percent to 10 cents in heavy trading on Tuesday.
Pacific Sunwear, which has posted annual losses since 2008, did not immediately respond to a request for comment.
The Chapter 11 filing could come as soon as next week, Bloomberg said, citing one of the people.
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The situation remains fluid, and the timing could change, the report said.
A sluggish retail spending environment and increasing competition from fast fashion and online rivals have hurt U.S. clothing retailers, driving companies such as American Apparel Inc, Quiksilver Inc and Wet Seal Inc to file for bankruptcy.
Pacific Sunwear, which operates about 600 stores, had long-term debt of $97 million and $11.3 million of cash and cash equivalents as of October.
By Subrat Patnaik; editor: Sriraj Kalluvila.
Fast-growing start-ups like Hettas, Saysh and Moolah Kicks created sneakers designed specifically for active women. The sportswear giants are watching closely.
The companies agreed to cap credit-card swipe fees in one of the most significant antitrust settlements ever, following a legal fight that spanned almost two decades.
In an era of austerity on Wall Street, apparel businesses are more likely to be valued on their profits rather than sales, which usually means lower payouts for founders and investors. That is, if they can find a buyer in the first place.
The fast fashion giant occupies a shrinking middle ground between Shein and Zara. New CEO Daniel Ervér can lay out the path forward when the company reports quarterly results this week.