Though the unnamed source said timing could change, the Chapter 11 filing could come as early as next week.
Talk of a looming bankruptcy filing started circulating last month when PacSun said it had received a second notice of delisting from Nasdaq for failing to keep its stock price at or above the $1.00 requirement at least once in 30 straight business days.
At publication time, PacSun’s shares were down more than 72 percent to $0.10.
PacSun has posted steady losses since 2008 and reportedly amassed a debt load in the $160 million range. In its most recent quarter ended Oct. 31, net sales were down 3 percent to $205 million and net loss for the period totaled $3.4 million.
The retailer got a $60 million senior secured term loan from an affiliate of San Francisco-based private equity firm Golden Gate Capital, which according to Bloomberg would give it “sway” in a potential bankruptcy.