This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Pacific Sunwear, THQ: After-Hours Trading

Stocks in this article: PSUN THQI GIII

NEW YORK ( TheStreet) -- Shares of Pacific Sunwear of California (PSUN) surged in late trades on Wednesday after the Anaheim, Calif.-based specialty retailer unveiled a dramatic restructuring plan that calls for the closure of 175-200 underperforming stores over the next 14 months.

The company also said it's secured a five-year $60 million term loan from private equity firm Golden Gate Capital, and that it's completed a five-year $100 million revolving credit line with Wells Fargo Capital Finance.

"The combination of these transactions greatly enhances our financial and operating position, and is another critical step forward as we work to re-establish PacSun as a leading specialty retailer across the U.S.," said Gary Schoenfeld, the company's president and CEO, in a statement. "With the support from all of our major landlords, we can now focus on our targeted base of 550-600 better performing stores and our enhanced merchandising and marketing strategies for becoming the preferred destination among teens and young adults for great style and great brands."

The stock was last quoted at $1.85, up 37%, on volume of nearly 150,000, according to Nasdaq.com. Based on Wednesday's regular session closing price of $1.35, the shares were down about 75% so far in 2011.

In order to facilitate the closing of the underperforming stores, Pacific Sunwear has reached a number of deals with its landlords, including buying out 75 leases for $13 million, agreeing to short-term extensions for 50 better performing stores, and terminating the leases of 115 stores upon expiration by the end of fiscal 2012.

Pacific Sunwear said Golden Gate is being issued convertible preferred stock that gives it the right to purchase up to 19.9% of the company's stock for $1.75 per share.

The company also reported a non-GAAP loss of $7.1 million, or 10 cents a share, for its fiscal third quarter on sales of $242 million, and said it expects a non-GAAP loss of 18 to 27 cents a share for its fiscal fourth quarter.

THQ

Shares of THQ (THQI) fell sharply in extended action after the entertainment software maker lowered its revenue outlook for the third quarter because of weak sales of its uDraw game tablet on the XBox 360 and Sony Playstation 3 gaming systems.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,776.67 +419.80 2.42%
S&P 500 2,053.09 +40.20 2.00%
NASDAQ 4,734.6570 +90.3450 1.95%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs