"We believe the best way to enhance shareholder value at thistime is to focus management's attention and capital on the corePacSun business," says Sally Frame Kasaks, the company's chiefexecutive, of its 837-store namesake chain. As part of itsthird-quarter results Pacific Sunwear will take a $48-millioncharge on Demo and a $4-million hit on One Thousand Steps.
Pacific Sunwear launched Demo in 1998 and One Thousand Steps inApril last year. In February, management announced that it wasclosing 74 Demo stores and launching a new prototype to overhaulthe chain. When One Thousand Steps launched, executives said thatthe chain could grow to up to 800 stores.
During its third quarter, which ended Aug. 4, Demo's same-storesales fell 10.7% year over year. Through the month of September,that plunge increased to 15.4%.
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