Pacific Sunwear to Shutter Demo Division

Anaheim, Calif. Pacific Sunwear of California Inc. said Friday it will close its 154 Demo stores, a move that will result in up to $4 million in charges in the fourth quarter.

Pacific Sunwear said the store closings are the result of a review of strategic alternatives for the brand, which features urban apparel. The review was first announced in October.

The decision to close the stores also follows the closure of 74 underperforming Demo stores in May. The company said it will close the rest of the stores by May of this year.

Separately, Pacific Sunwear said it will relocate all of its distribution activities to its center in Olathe, Kan., and will close its distribution center in Anaheim, Calif., by the end of April.