PacSun To Restructure Under Chapter 11; Q4 Loss Narrows - Quick Facts

(RTTNews) - Pacific Sunwear of California, Inc. (PSUN) announced a restructuring support agreement with affiliates of Golden Gate Capital, the holder of its secured term loan provider. A Plan of Reorganization was approved by the Board. To implement the Plan of Reorganization, PacSun filed voluntary petitions to restructure under Chapter 11 of the United States Bankruptcy Code. Upon exit, PacSun will operate as a privately owned entity by Golden Gate Capital.

PacSun reported a fourth-quarter GAAP net loss of $10.0 million, or $0.14 per share, compared to a net loss of $26.0 million, or $0.38 per share, for the fourth quarter of prior year. On a non-GAAP basis, excluding items, the company would have incurred a net loss for the fourth quarter of fiscal 2015 of $6.4 million, or $0.09 per share, compared to net loss of $7.1 million, or $0.10 per diluted share, for the same period a year ago.

Net sales were $232.9 million compared to $231.6 million, last year. Comparable store sales were slightly positive at 0.2%.