Even a clothing line from Kendall and Kylie Jenner hasn't been enough to keep Pacific Sunwear out of bankruptcy, but the company says it will continue to operate as it reorganizes its finances. Bobbi Rebell reports.
Kendall and Kylie Jenner apparently not enough to save Pacific Sunwear. The struggling teen apparel retailer, which sells the sisters' clothing line, filing for Chapter 11 bankruptcy protection. Pacific Sunwear has been facing mounting losses and intense competition in the industry. Teen retailers have been losing ground to fast fashion retailers as well as online rivals. The company will convert to a private company, controlled by creditors and investors including private equity firm Golden Gate Capital. Other top creditors include Nike and Simon Property. Shares were down sharply in pre-market trading on Thursday. The company says it will continue to operate all of it's 600 stores as it reorganizes, and does not expect the filing to have any immediate impact on its employees. Pacific Sun also said, it's customer loyalty programs will remain intact and gift cards and credits will remain valid.