Surfwear brand PacSun filed for bankruptcy protection earlier this year after revealing a fourth-quarter loss of $10 million USD. In the months following the announcement, the company had planned to auction off its assets on June 22 to a “higher bidder and better offer” than what private equity firm Golden Gate Capital had set for its reorganization. Unfortunately, the cancellation means that the San Francisco-based firm will acquire PacSun since no bids were offered by the June 15 deadline. The terms also mean that Golden Gate Capital will have a 100% ownership of the company.

The Orange County Business Journal also reports that Wells Fargo Bank is involved to provide $100 million USD in “debtor-in-possession” financing. Other PacSun problems include trying to reduce costs on store leases, which are said to total around $140 million USD per year.

It will be interesting to see what happens to the popular mall store as it slowly reorganizes itself under new ownership.