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LOS ANGELES, United States — Struggling surfwear chain Pacific Sunwear of California Inc filed for Chapter 11 bankruptcy protection on Thursday, succumbing to years of losses and intense competition in the teen apparel industry.
The Anaheim-based retailer listed assets in the range of $50 million to $100 million, and liabilities of between $100 million and $500 million, according to a court filing.
Pacific Sunwear said private equity firm Golden Gate Capital had agreed to convert more than 65 percent of its debt into equity of the reorganized company and provide a minimum of $20 million in additional capital.
Golden Gate Capital had lent PacSun about $60 million in 2011.
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The company also listed sportswear maker Nike Inc and mall operator Simon Property Group Inc among its top creditors.
PacSun owes Nike $5.7 million and Simon Property $3.8 million for occupancy charges.
In a separate filing, subsidiary Pacific Sunwear Stores Corp listed assets of $100 million to $500 million and liabilities of $100 million to $500 million.
PacSun also said it had a debtor-in-possession credit agreement of $100 million with Wells Fargo Bank.
Declining mall traffic and competition from fast-fashion retailers and online rivals has hurt sales at many teen apparel retailers, including Aeropostale Inc, Abercrombie & Fitch Co and American Eagle Outfitters Inc.
PacSun operates about 600 stores.
By Yashawini Swamynathan and Ramkumar Iyer; editor: Sunil Nair and Anupama Dwivedi.