Teen retailer Pacific Sunwear of California Inc said it received a $60 million loan from private equity firm Golden Gate Capital in return for two board seats and the right to purchase a 20 percent stake in the company. The company also said it would close 175-200 underperforming stores in the next 14 months.The retailer of surf- and skate-related clothes and merchandise has been struggling in the wake of a weak economy and promotions to attract shoppers.The company also said it will receive a five-year, $100 million revolver from Wells Fargo.Shares of the company, that have shed more than 76 percent of their value since the beginning of this year, closed at $1.35 on Wednesday on Nasdaq.
Pacific Sunwear of California, Inc. (PacSun) is a specialty retailer rooted in the action sports, fashion and music influences of the California lifestyle. Shares of PSUN traded higher by 3.05% or $0.04/share to $1.35. In the past year, the shares have traded as low as $1.11 and as high as $6.20. On average, 657647 shares of PSUN exchange hands on a given day and today's volume is recorded at 853613.
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