PacSun to Cut Inventory, Jobs
Anaheim, Calif.–based chain retailer Pacific Sunwear of California announced that it will reduce its planned inventory levels by a minimum of 20 percent in 2009 and eliminate approximately 47 jobs at its headquarters and 10 field management positions. The cuts, part of the mall retailer’s ongoing efforts to cut costs, will also affect its planned selling, general and administrative expenses, reducing them by approximately $35 million compared with last year. In 2009, the statement said, Pacific Sunwear plans to keep its capital expenditures to no more than $30 million—more than $50 million less than what it spent in fiscal 2008.
“The actions announced today are aimed at putting our company in a stronger position to weather the continuing challenges in the macroeconomic environment while enabling us to continue moving forward with the key strategic initiatives we have underway,” said Sally Frame Kasaks, Pacific Sunwear’s chief executive officer and chairman, in a statement. “We are very disappointed to announce the workforce reductions but believe we must be prudent in managing our costs and strengthening our balance sheet and liquidity as we meet head-on the unprecedented conditions that the retail industry is currently facing.”
Pacific Sunwear operates 937 stores in 50 states and Puerto Rico. —Erin Barajas
