Longstanding outdoor apparel retailer Eddie Bauer is reportedly on the verge of filing for Chapter 11 bankruptcy protection for the third time in its history, a move that could result in the closure of its entire network of approximately 200 brick-and-mortar stores across North America.
Imminent Bankruptcy Filing and Store Closures
According to a report from WWD, Eddie Bauer is preparing to initiate Chapter 11 bankruptcy proceedings, which will likely trigger the shutdown of its physical retail footprint. The store operations are currently owned by Catalyst Brands, a consortium formed last year by major players including Simon Property Group, Brookfield Corp., Authentic Brands Group, and Shein. This entity also manages other well-known brands such as Lucky Brand, Aéropostale, Nautica, Brooks Brothers, and JCPenney.
Operations Unaffected by Bankruptcy
Importantly, the anticipated bankruptcy filing is not expected to impact Eddie Bauer's manufacturing, e-commerce, and wholesale operations in the United States and Canada. These segments are in the process of being transferred from Catalyst Brands to a new licensee. Last month, a deal was announced to move these Eddie Bauer operations to Outdoor 5, a global brand development and licensing platform. The bankruptcy filing is expected to occur once this ownership transfer is finalised.
The report also indicates that the filing would not affect the remaining 20 Eddie Bauer stores operating in Japan, which will continue their business as usual. The Independent has contacted both Catalyst Brands and Outdoor 5 for comment on the developing situation.
A Century-Long Legacy Facing Challenges
Eddie Bauer has been a cherished name in the outdoor industry for over a century, founded by Eddie Bauer himself, who is credited with patenting the first quilted down jacket in 1940. However, the company has experienced significant turbulence since its founder sold it in 1968, changing ownership multiple times.
History of Previous Bankruptcies
This would mark the third time Eddie Bauer has sought Chapter 11 protection. In 2003, its then-parent company, Spiegel Inc., filed for bankruptcy, leading to numerous store closures. The brand emerged in 2005 after restructuring into an independent entity, Eddie Bauer Holdings Inc.
Then, in 2009, Eddie Bauer Holdings Inc. filed again, citing substantial debt, declining sales, and pressures from the global recession. Following this, the company was acquired out of bankruptcy by private equity firm Golden Gate Capital for approximately $286 million.
The potential closure of 200 stores represents a significant contraction for the historic retailer, though its core product development and online sales channels are poised to continue under new stewardship, preserving the brand's presence in the market.
