A Delaware judge officially approved PacSun’s bankruptcy plan Tuesday, five months after the retailer filed for bankruptcy protection.
Lender Golden Gate Capital is set to become the new owner of the company and PacSun will no longer be publicly traded.
After renegotiating leases during the bankruptcy process, PacSun is keeping a significant number of stores open.
The numbers may change a bit, but the latest figures listed in court documents shows PacSun plans to close about 27 of its approximately 593 locations.
As part of the plan, general unsecured creditors will split $400,000 while qualified vendors with unsecured trade claims will receive 50% of what they are owed on the effective date of the plan and 50% on Dec. 15, according to court documents.
In court documents, PacSun makes references to the continuing challenges with traffic at malls and with same-store sales. However, it also said e-commerce results have been better than expected.
We talked with CEO Gary Schoenfeld about the bankrutpcy case and future plans in August. Executive Edition members can see that interview here.
