Outdoor apparel retailer Eddie Bauer is reportedly on the verge of filing for Chapter 11 bankruptcy protection, marking what would be the third such filing in the company's history. According to recent reports, the potential bankruptcy proceedings could lead to the closure of approximately 200 brick-and-mortar stores across North America, significantly impacting the brand's physical retail presence.
Operations to Continue Under New Licensee
The anticipated bankruptcy filing would not affect Eddie Bauer's core operational divisions, including manufacturing, e-commerce, and wholesale operations. These business segments are currently in the process of being transferred to a new licensee identified as Outdoor 5. The transition follows an agreement announced last month, with the bankruptcy filing expected to occur once this operational transfer has been formally completed.
Historical Context of Financial Struggles
This development represents a continuation of financial challenges for the outdoor clothing specialist. Eddie Bauer has previously filed for Chapter 11 bankruptcy protection twice before, with filings occurring in both 2003 and 2009. The company's potential return to bankruptcy court underscores the ongoing difficulties facing traditional retail operations in the competitive outdoor apparel market.
The reported store closures would represent a significant reduction in Eddie Bauer's physical footprint across North America, though the brand's products would continue to be available through online channels and wholesale partnerships under the new licensing arrangement with Outdoor 5.
