Pacific Sunwear of California looks to be focusing its effort on its
PacSun concept after announcing plans last week to close the new One
Thousand Steps 9-store concept, while exploring “strategic
alternatives” for its demo urban chain. The two chains collectively
generated a pre-tax operating loss of approximately $21 million during
the first nine months of the year.
Pacific Sunwear estimates that it will recognize non-cash fixed asset
impairment charges on demo stores of approximately $48 million and
inventory reserve charges for demo and One Thousand Steps aggregating
approximately $4 million in its third quarter.
The retailer also said it may incur additional charges related to
potential lease terminations, inventory liquidations, employee
retention and severance, and/or agency fees associated with the
evaluation or implementation of potential strategic alternatives.
