Brand apparel retailer sought bankruptcy protection
Posted on Friday, April 22nd, 2016 at 9:39 pm
A Chapter 11 bankruptcy was recently filed by California-based company Pacific Sunwear after experiencing income losses for several years, an article of CBS News reported on April 8.
According to reports, the novelty apparel retailer has been affected by socio-economic factors like some of their competitors. Pacific Sunwear sought bankruptcy protection, hoping to continue business by working with a private lending company. Company CEO Gary Schoenfeld stated that the filing will help them cover approximately $140 million annual occupancy cost and long-term debt amounting to $90 million. The lending company, on the other hand, will shell out $20 million and convert Pacific Sunwear’s two-thirds of debt into equity. Pacific Sunwear currently has over 600 stores in 50 states including in Raleigh, North Carolina.
Like many national companies, the lawyers of the Bradford Law Offices, PLLC understand that some businesses in Fayetteville are dealing with financial issues. If you believe you are in this frustrating situation, we may offer you legal assistance if you have decided to file for bankruptcy. Call our office today at (919) 758-8879 to find out how we may possibly help you regain your financial footing.