Additional Coverage:
- Eddie Bauer’s retail operator files for Chapter 11 bankruptcy, seeks buyer to save stores (businessinsider.com)
Eddie Bauer North American Stores File for Bankruptcy, Nearly 200 Locations at Risk
The entity responsible for operating Eddie Bauer’s retail stores across North America has officially filed for Chapter 11 bankruptcy, placing nearly 200 locations in the U.S. and Canada in jeopardy of closure.
Eddie Bauer LLC, a subsidiary of retail holding company Catalyst Brands, submitted the bankruptcy petition in federal court in New Jersey on Monday. This move directly impacts the iconic American outdoor apparel chain’s physical storefronts.
Under the Chapter 11 restructuring plan, the company intends to initiate liquidation sales at its stores while simultaneously seeking a buyer for all or part of its North American retail operations. A successful sale could potentially prevent a complete shutdown of the business. However, if no buyer emerges, the retailer anticipates closing its stores across the U.S. and Canada.
In the interim, Eddie Bauer retail and outlet stores will remain open as the company begins the process of winding down certain locations.
Marc Rosen, CEO of Catalyst Brands, stated that Eddie Bauer has been facing significant challenges, including declining sales and supply chain disruptions, even prior to the formation of Catalyst Brands last year. These issues have been further compounded by recent economic headwinds such as inflation and ongoing tariff uncertainties.
The bankruptcy filing indicates that Eddie Bauer LLC has over 100,000 creditors, with estimated assets ranging from $100 million to $500 million and estimated liabilities between $1 billion and $10 billion.
It’s important to note that this bankruptcy filing does not affect Eddie Bauer’s manufacturing, wholesale, or e-commerce operations. Additionally, its retail business outside of North America, including stores in Japan, remains unaffected.
Last month, Authentic Brands Group, the global owner of the Eddie Bauer brand and intellectual property, announced a shift in licensing for Eddie Bauer’s North American manufacturing, e-commerce, and wholesale operations from Catalyst to Outdoor 5.
A History of Financial Challenges for Eddie Bauer
Eddie Bauer, a brand with a deep-rooted history in American outdoor apparel, has long been recognized for its durable and innovative gear designed for extreme conditions. Founded in Seattle in 1920 by outdoorsman Eddie Bauer, the company famously patented the country’s first quilted goose-down jacket after its founder’s personal experience with hypothermia.
This is not the first time the brand has faced bankruptcy proceedings. Eddie Bauer previously filed for Chapter 11 in 2003 as part of its then-parent company, Spiegel, emerging as a standalone entity two years later. The retailer again sought Chapter 11 protection in 2009 due to mounting debt and was subsequently acquired by private equity firm Golden Gate Capital through a bankruptcy auction.
In 2021, Authentic Brands Group, in partnership with SPARC Group (which later became Catalyst Brands), acquired Eddie Bauer.