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.
ADVERTISEMENT
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.
Designer brands including Gucci and Anya Hindmarch have been left millions of pounds out of pocket and some customers will not get refunds after the online fashion site collapsed owing more than £210m last month.
Antitrust enforcers said Tapestry’s acquisition of Capri would raise prices on handbags and accessories in the affordable luxury sector, harming consumers.
As a push to maximise sales of its popular Samba model starts to weigh on its desirability, the German sportswear giant is betting on other retro sneaker styles to tap surging demand for the 1980s ‘Terrace’ look. But fashion cycles come and go, cautions Andrea Felsted.
The rental platform saw its stock soar last week after predicting it would hit a key profitability metric this year. A new marketing push and more robust inventory are the key to unlocking elusive growth, CEO Jenn Hyman tells BoF.