California based retailer, PacSun has filed Chapter 11 bankruptcy under an agreement to restructure the company due to a decrease in revenue and stocks. Because PacSun has dropped from $2.50 a share to a mere 10 cents, it's safe to say that it's time to visit the drawing board. But all is not lost thanks to the Golden Gate Capital, PacSun is getting a $20 million budget to revamp and start over?
Previously known for oversized board shorts and skate board panels, PacSun repositioned itself into the streetwear lane culling brands like Brandy Melville, Crooks and Castles, Diamond, DGK and Fear of God along with Kayne West and the Jenner girls to no avail. Ovrexpansion and a flee from the core of the company seems to be a part of why it cannot meet the demands of street wear gurus. Hopefully PacSun can return to it's roots of premium skate wear or attempt to be ahead of the street wear trend. With a budget of 20 million, we are sure PacSun will become better in the future. Check out the letter from the CEO below and stay tuned for more updates.