PacSun to shutter remaining demo stores

ANAHEIM, Calif. Pacific Sunwear of California reported today that it will close its remaining 154 demo stores as soon as is practical.

In February 2007, Pacific Sunwear said it planned to close 74 underperforming demo stores, which it did by the end of May 2007. The company said it decided to shutter the remaining stores following a review of strategic alternatives for its demo division.

Pacific Sunwear's chairman and ceo Sally Frame Kasaks commented, "As we previously announced, we strongly believe that the best course for enhancing shareholder value is to focus our attention and resources on the PacSun business. We engaged an outside financial advisor to help us carefully evaluate strategic alternatives for demo and have determined on the basis of this review that it is in the best interests of our investors to close our remaining demo stores and concentrate our efforts on our core business."

The company also announced today that it will relocate all of its distribution activities to its distribution center in Olathe, Kan., and close its distribution center in Anaheim, Calif. According to Kasaks, the move would improve supply chain efficiency and cut costs.