California dreamin’ has turned into a California nightmare.
Teen apparel retailer Pacific Sunwear of California filed for Chapter 11 on Thursday, joining Golden State chains American Apparel and Quiksilver in going belly-up.
PacSun management said it is planning to reorganize through a debt-for-equity swap with private equity firm Golden Gate Capital.
The 593-store chain has been struggling for years, as have many in the sector, including Eastern Mountain Sports, according to lawyer Tom Onder of Stark & Stark.
PacSun posted an operating loss in each of the last five years, totaling $288 million. It added another $12.5 million to the deficit in the nine months ended Oct. 31.
PacSun will continue to operate its business without interruption to customers, vendors, and employees, the company said.



