Pacific Sunwear likely to file bankruptcy next week

5 April 2016 (Last Updated April 5th, 2016 18:30)

US-based surfware and lifestyle group Pacific Sunwear is planning to file for Chapter 11 bankruptcy.

US-based surfware and lifestyle group Pacific Sunwear is planning to file for bankruptcy by next week, Bloomberg reports.

The Californian apparel retail chain has been reporting losses since 2008, and the company’s shares have declined in the last year.

Potential reasons cited for the bankruptcy include reduced spending, shifted consumer preferences, and the growth of online retail channels.

American Apparel and Quiksilver also filed for bankruptcy in the last year.

"Potential reasons cited for the bankruptcy include reduced spending, shifted consumer preferences, and the growth of online retail channels."

Pacific Sunwear operated 613 outlets as of December 2015.

The company is based in Anaheim, California and has a distribution facility in Olathe, Kansas.

San Francisco-based private equity firm Golden Gate Capital’s affiliate has offered the retailer a $60m senior secured term loan, giving it control in the potential bankruptcy.

The private investment firm’s consumer and retail portfolio comprises Eddie Bauer, Payless ShoeSource and California Pizza Kitchen, reported Bloomberg.