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.
The company said it now sees net sales coming in 25% below its previous forecast of $510 million to $550 million for the quarter which ends in December. The current consensus estimate of analysts polled by Thomson Reuters is for revenue of $529.4 million in the quarter. "Despite uDraw's strong success on the Wii in fiscal 2011 and market research indicating strong demand for uDraw on Xbox 360 and PlayStation 3, initial sales of our uDraw tablet and software on these high-definition platforms have been weaker than expected," said Brian Farrell, the company's president and CEO, in a statement. "WWE '12 and Saints Row: The Third are expected to perform at or better than the levels we discussed on our fiscal 2012 second quarter earnings call. As we continue to move through the third quarter, we are focused on driving sales of our key holiday titles and maximizing profitability." The stock was last quoted at $1.16, down 21%, on after-hours volume of nearly 170,000, according to Nasdaq.com. THQ shares lost 11% to $1.46 in Wednesday's regular session, and the stock is down more than 70% so far in 2011. G-III Apparel ( GIII) was also an after-hours mover. The company's shares jumped more than 18% to $24.09 on volume of more than 115,000 after the clothing maker and seller reported above-consensus earnings for the third quarter and said it's secured a license to open Calvin Klein Performance brand stores. -- Written by Michael Baron in New York. >To contact the writer of this article, click here: Michael Baron. >To submit a news tip, send an email to: firstname.lastname@example.org