Anaheim, Calif.-based retailer Pacific Sunwear of California Inc. said in a regulatory filing today that its delisting on the Nasdaq becomes effective July 15.
The company updated the markets in March of a second warning letter from the exchange about its shares trading below the required $1 minimum at least once during the course of a 30-day period. The company said at that time it planned to appeal that decision, but withdrew that request in April followed its filing for Chapter 11 bankruptcy.
The company sells a mix of proprietary and outside brands, including Kendall & Kylie, Brandy Melville, Vans, Young & Reckless, Billabong and Obey. It operates in the tough teen and young adult segment of the market that has seen others within the space also seek shelter in reorganization via bankruptcy, including American Apparel Inc. and Quiksilver Inc. A significant chunk of overall annual sales for Pacific Sunwear — about 35 to 40 percent — were generated during the holiday and back-to-school selling seasons, which were impacted by weather, among other issues, that hurt mall traffic in more recent years, according to the company’s disclosure statement filed late last month.
An auction for the retailer, which has nearly 600 stores nationally, had been scheduled for June. However, no bidders aside from its lender Golden Gate Capital emerged, thus paving the way for the San Francisco private equity firm’s ownership of the chain.
The company had net sales of $800.9 million for its fiscal year ended Jan. 30, down from $826.8 million in the prior year. The retailer reported a non-adjusted net loss of $9.2 million during the same period, narrowed from a net loss of $29.4 million a year earlier. Same-store sales were off 2.6 percent for the year.