Additional Coverage:
Eddie Bauer Files for Bankruptcy, Stores to Remain Open as Company Seeks Buyer
NEW YORK – The operator of approximately 180 Eddie Bauer retail locations across the United States and Canada has initiated Chapter 11 bankruptcy proceedings, citing a downturn in sales and a range of broader industry challenges. This marks the third bankruptcy filing in just over two decades for the brand, which began as a Seattle fishing shop and famously outfitted the first American to summit Mount Everest.
Eddie Bauer LLC announced Monday that it has entered into a restructuring agreement with its secured lenders, filing in the U.S. Bankruptcy Court for the District of New Jersey.
While some locations will be wound down, the majority of Eddie Bauer’s U.S. and Canadian retail and outlet stores are expected to remain open during a court-supervised sales process. Should a buyer not be secured, the company stated it would commence a full wind-down of its operations in these regions.
“This is not an easy decision,” stated Marc Rosen, CEO of Catalyst Brands, the entity holding the license to operate Eddie Bauer stores in the U.S. and Canada. Rosen emphasized that the restructuring is intended to maximize value for the retail company’s stakeholders and maintain Catalyst Brands’ profitability, liquidity, and cash flow.
Operations for Eddie Bauer stores outside the U.S. and Canada, which are managed by other licensees, are not affected by this filing and will continue as usual. Authentic Brands Group retains ownership of Eddie Bauer’s intellectual property and may license the brand to future operators. Other brands within the Catalyst Brands portfolio are also unaffected.
Furthermore, Eddie Bauer’s e-commerce and wholesale divisions will continue uninterrupted, as they are operated by Outdoor 5, LLC, a transition that became effective on February 2nd.
Eddie Bauer joins a growing list of retailers this year grappling with financial difficulties, with many seeking bankruptcy protection to reorganize or streamline operations. Recent examples include the parent company of Saks Fifth Avenue, which filed for bankruptcy last month, and Amazon’s decision to close most of its Amazon Go and Amazon Fresh stores to focus on food delivery and Whole Foods Market.
The Eddie Bauer brand was founded in Seattle in 1920 by avid outdoorsman Eddie Bauer, initially as Bauer’s Sports Shop. The company gained renown for its innovations, including the patented “Skyliner” goose-down insulated jacket in 1936, and its contribution of over 50,000 jackets for the military during World War II.
In 1963, an Eddie Bauer parka accompanied James W. Whittaker on his historic ascent of Mount Everest.
After Bauer’s retirement in 1968, the brand transitioned through several ownership changes, including General Mills Inc. and Spiegel Inc. Its first bankruptcy filing occurred in 2003, followed by a reorganization in 2005.
Subsequent bankruptcies and acquisitions took place in 2009 and 2021, when it was acquired by Authentic Brands and SPARC Group LLC. Catalyst Brands was formed last year through the merger of SPARC and JCPenney.
Rosen acknowledged that Eddie Bauer was already facing “challenged situation” even before Catalyst Brands’ formation, with these difficulties compounded over the past year by factors such as inflation, increased operating costs, and tariff uncertainties. While leadership implemented improvements in product development and marketing, these efforts were insufficient to rapidly address long-standing issues.
At its peak in 2001, Eddie Bauer boasted nearly 600 stores. However, industry analysts like Neil Saunders, managing director of GlobalData Retail, note that the brand has struggled to keep pace with modern rivals and has faced perceptions of declining quality. Saunders added that for many younger consumers, Eddie Bauer is viewed as “somewhat old-fashioned and a bit irrelevant.”