Pacific Sunwear, a struggling surfwear retailer more commonly know as PacSun, is preparing to file for bankruptcy, Bloomberg News reported on Monday evening, citing people with knowledge of the matter.
The interim chief financial officer, Chris Tedford, who also oversees investor relations, did not respond to a Coins2Day request for comment.
If the chain does file for Chapter 11 bankruptcy, it would only be the latest retailer to do so at a time many stores are struggling with declining mall traffic and shifting consumer spending patterns.
Bloomberg said that the filing could come as soon as next week, though its sources said the timing could change.
Other retailers to have filed for bankruptcy protection in the last year include American Apparel, Quicksilver, and, last month, The Sports Authority. Aeropostale (ARO) is another retailer hemorrhaging sales with its stock trading below $1, a level associated with companies considered to be at risk of insolvency.
PacSun, which operates more than 600 stores, has recorded a net loss each year since the Great Recession began in 2008. In the first nine months of the fiscal year that recently ended (full year results have not been published yet), revenue fell 5.5% to $568 million. Meanwhile, its long term debt rose to $97 million from $88 million.
The company’s shares fell 78% on Monday to close at 7.6 cents. The stock has been as high as $2.67 in the 12 months.