Additional Coverage:
- Eddie Bauer’s almost 200 North American stores are at risk of closure as its operator nears bankruptcy (businessinsider.com)
Eddie Bauer Stores in US and Canada Face Uncertain Future Amidst Potential Bankruptcy Filing
NORTH AMERICA – The iconic outdoor apparel retailer, Eddie Bauer, could see its nearly 200 stores across the United States and Canada close their doors for good. Sources close to the situation indicate that an entity of Catalyst Brands, which holds the licensing rights to operate Eddie Bauer stores in North America, is preparing to file for Chapter 11 bankruptcy.
This potential bankruptcy filing would place approximately 180 Eddie Bauer locations in the US and Canada at risk of closure as part of a restructuring effort. The 106-year-old brand, founded in Seattle in 1920 by outdoorsman Eddie Bauer, is renowned for its durable outerwear, including the patented “Skyliner,” the country’s first quilted goose down jacket. Beyond jackets, the company also offers a range of hiking and travel gear, including luggage.
According to sources, a Chapter 11 filing by the Catalyst Brands entity would specifically impact the North American store operations and would not extend to Eddie Bauer’s manufacturing, wholesale, e-commerce, or its international retail presence, such as stores in Japan.
Amidst these developments, there are reports of multiple interested parties looking to acquire portions of the existing North American store network. In a Chapter 11 scenario, these bidders could vie for all or part of the store operating business. A successful bidder would then acquire the operations post-bankruptcy and secure licensing rights from Authentic Brands Group – the global owner of the Eddie Bauer brand and intellectual property – to continue operating any remaining stores.
Representatives for Authentic Brands Group have declined to comment on the matter. Catalyst Brands, which also operates stores for JCPenney, Nautica, and Brooks Brothers, has not yet responded to requests for comment.
This potential restructuring follows a recent shift in licensing agreements. Last month, Authentic Brands Group announced the transition of Eddie Bauer’s North American manufacturing, e-commerce, and wholesale operations licenses from Catalyst to Outdoor 5.
This isn’t Eddie Bauer’s first brush with financial difficulties, as the company previously filed for bankruptcy in 2003 and again in 2009. In 2021, Authentic Brands Group, in partnership with SPARC Group (which later became Catalyst Brands), acquired the brand.