It seems that now is the time that Pacific Sunwear of California Inc. (NASDAQ: PSUN) may be on the verge of implosion. It is sad to see when this happens, but this is what can occur when a company operates at losses year after year. Still, perhaps this should not be a large surprise.
24/7 Wall St. recently covered 10 brands that will disappear in 2016. As you may have guessed here, Pacific Sunwear of California was among the 10 brands likely to disappear.
Now there are two negative issues hitting simultaneously. Pacific Sunwear has reportedly hired financial advisors to assist it as it struggles with a maturing debt burden. Its stock is also closer to delisting from the Nasdaq as well. Both are ill omens for the common stock holders.
The Wall Street Journal’s Daily Bankruptcy Review indicated that Pacific Sunwear hired FTI Consulting and Guggenheim Securities to help it deal with $160 million in debt that is due to mature later in 2016. Their report was that PacSun is pondering whether to restructure the debt outside of court or to seek a Chapter 11 bankruptcy reorganization.
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