Pacific Sunwear asks financial advisers for help with their debt

Pacific Sunwear of California Inc., has hired financial advisers to help them restructure the maturing debt load as the company continues to struggle to get its shoppers back.

As announced at the beginning of the week in a statement, the fashion retailer is working with restructuring firm FTI Consulting Inc. and investment bank Guggenheim Securities to handle the 160 million dollars’ worth of debt scheduled to mature later this year.

The company is weighing its options whether to restructure the debt outside of court, or as part of a restructuring under chapter 11, according to people familiar with the situation.

The retailer's 100 million dollars revolving loan with Wells Fargo Bank N.A. and 60 million dollars term loan backed by private- equity firm Golden Gate Capital mature in December. When the Golden Gate-backed term loan matures, the company will be required to make a 27 million dollars paid-in-kind interest payment, reported CNN.

The apparel group said last year that it hoped to complete the sale or lease-back of its headquarters in Anaheim and distribution facility in Olathe, Kan., to pump more cash into the company. However, Chief Executive Gary Schoenfeld said during the third quarter conference call that it was "still in discussions" regarding the sale or lease-back of the locations, published Nasdaq.

Pacific Sunwear also implemented an annual cost reduction program during fiscal 2015, which it believes will yield about 15 million dollars in annual savings, according to a filing.