Pacific Sunwear (PSUN) shares jumped more than 25% after hours as the company announced that it will close 175 to 200 underperforming stores in the next 14 months as part of a lease renegotiation with landlords.
“For the prior twelve months through the end of the third quarter, the stores that we will be closing had average sales of $0.6 million and a same-store sales rate of -9%. Conversely, average sales for the remainder of our stores were approximately $1.1 million with a same-store sales rate of -1% which represents a much healthier base to move forward with,” said CEO Gary� Schoenfeld.
The sports apparel retailer also said it has secured a five-year $100 million revolving credit facility and a $60 million senior secured term loan.
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