Pacific Sunwear Closing 175 to 200 Stores by Early 2013

It's a gloomy forecast for underperforming Pacific Sunwear stores; the apparel retailer plans to close 175 to 200 such units over the next 14 months, but did not indicate where specific closures would take place. As of December 7, 2011, the company operates 819 stores in all 50 states and Puerto Rico.

Pacific Sunwear also announced that it has secured a five-year, $100 million revolving credit facility with Wells Fargo Capital Finance and a five-year, $60 million senior secured term loan funded by Golden Gate Capital.

"The combination of these transactions greatly enhances our financial and operating position, and is another critical step forward as we work to re-establish PacSun as a leading specialty retailer across the U.S.," said CEO Gary Schoenfeld in a statement. "With the support from all of our major landlords, we can now focus on our targeted base of 550-600 better performing stores and our enhanced merchandising and marketing strategies for becoming the preferred destination among teens and young adults for great style and great brands."

The store closing announcement was accompanied by Pacific Sunwear's Q3 financial results. Net sales of $242 million for the quarter that ended October 29, 2011 were 6.2% lower than the $257.9 million sold during the same period last year. Comp store sales declined 3% for the quarter.

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