Anaheim-based Pacific Sunwear of California has been acquired by a San Francisco-based private equity firm as part of a bankruptcy court reorganization, it was announced Wednesday.
Golden Gate Capital’s plan was approved by a U.S. Bankruptcy Court in Delaware on Tuesday. Golden Gate Capital announced it converted about 65 percent of its term loan debt into PacSun and chipped in $20 million in capital.
Wells Fargo will also provide a five-year, $100 million revolving line of credit to PacSun.
“Now, with a strengthened balance sheet, reduced long-term debt and reduced annual occupancy costs, the company is well-positioned to build a stronger future and achieve long-term success,” said Josh Olshansky, managing director at Golden Gate Capital.
PacSun President and CEO Gary H. Schoenfeld said the apparel, accessories and footwear company has made it through bankruptcy “stronger and more competitive” over the past five months.
“Looking ahead, we plan to continue our brand transformation and deliver our customers the most relevant specialty apparel and sneakers along with the best brands and great style that define PacSun and our unique 34-year heritage,” Schoenfeld said. The company operates 583 stores in all 50 states and Puerto Rico.
–City News Service