The operator of about 180 Eddie Bauer stores across the U.S. and Canada has filed for Chapter 11 bankruptcy protection, attributing the move to declining sales and a series of other industry challenges.
The bankruptcy filing marks the […] for the once-esteemed but now-ailing brand that began as a Seattle fishing shop, later outfitted the first American to climb Mount Everest, and produced thousands of innovative down jackets and sleeping bags for the military during World War II.
Eddie Bauer LLC announced on Monday that it had reached a restructuring agreement with its secured lenders as it filed for bankruptcy in the U.S. Bankruptcy Court for the District of New Jersey.
Most Eddie Bauer retail and outlet stores in the U.S. and Canada will remain open as the company phases out certain locations. It stated that it will conduct a court-supervised sales process, and if a sale cannot be finalized, it will initiate a wind-down of its U.S. and Canadian operations.
“This is not an easy decision,” said Marc Rosen, CEO of Catalyst Brands, which holds the license to operate Eddie Bauer stores in the U.S. and Canada. “However, this restructuring is the best approach to maximize value for the retail company’s stakeholders and ensure Catalyst Brands remains profitable with strong liquidity and cash flow.”
According to the release, Eddie Bauer’s stores outside the U.S. and Canada are operated by other licensees, are not included in the Chapter 11 filings, and will remain open.
The company noted that Authentic Brands Group continues to own the intellectual property tied to the Eddie Bauer brand and may license the brand to other operators. It added that the operations of other brands in the Catalyst Brands portfolio are unaffected by this filing and will continue as usual.
Eddie Bauer’s e-commerce and wholesale operations, which are managed by a company called Outdoor 5, LLC, will also not be impacted by the wind-down. This transition was made in January and took effect on February 2.
Eddie Bauer joins a growing list of U.S. retailers this year that are closing stores, as companies restructure under bankruptcy protection or scale back operations to focus on their most profitable ventures.
The […] of Saks Fifth Avenue announced last month that it was seeking bankruptcy protection, strained by increasing competition and the massive debt it took on […] Neiman Marcus, just over a year ago. A few days later, the parent company said it was closing most of its […]
[…] said earlier this month that it was closing nearly all of its […] within days as it refocuses on food delivery and its grocery chain, Whole Foods Market.
According to the brand’s website, Eddie Bauer’s namesake founder—an enthusiastic outdoorsman—established the company in Seattle in 1920 as Bauer’s Sports Shop. In 1945, after producing more than 50,000 jackets for the military, it launched a mail-order catalog.
“Bauer’s Sports Shop was not merely a place where people bought clothing and gear; it was a community center where individuals gathered to share knowledge, learn, and discuss their outdoor experiences,” the website states.
In 1936, the company created an American goose-down insulated jacket, known as the “Skyliner,” which became its first patented jacket. It also provided the first American to climb Mount Everest—James W. Whittaker—with an Eddie Bauer parka in 1963.
After Bauer retired in 1968 and sold the business to his partner, the outdoor brand shifted more toward casual apparel, was acquired by […] Inc. in 1971, and then by Spiegel Inc. in 1988. After Spiegel filed for bankruptcy in 2003 and most of its assets were sold, the remaining part of the company was reorganized in 2005 as Eddie Bauer Holdings Inc.
In June 2009, Eddie Bauer filed for bankruptcy and was acquired by Golden State Capital the following month. In 2021, it was acquired by Authentic Brands and SPARC Group LLC.
A year ago, Catalyst was formed through the merger of SPARC and JCPenney, which […] and fellow mall landlord […] bought out of bankruptcy.
Rosen noted that Eddie Bauer was in a “challenged situation” even before Catalyst Brands was established last year.
“Over the past year, these challenges have been worsened by various headwinds, including higher business costs due to inflation, ongoing tariff uncertainty, and other factors,” he said.
He mentioned that while Catalyst’s leadership was able to make improvements in product development and marketing, these changes could not be implemented quickly enough to fully address the issues that had accumulated over several years.
According to […] Inc., a commercial real estate data firm, Eddie Bauer had nearly 600 stores at its peak in 2001.
In a note published earlier this month, Neil Saunders, managing director of GlobalData Retail, wrote that while the Eddie Bauer name is “well known,” the brand has not kept up with competitors like Swedish outdoor brand Fjallraven and Canadian label Arc’teryx. He also pointed to declining quality, which is particularly problematic for an outdoor brand evaluated by the performance of its products.
“And for many younger shoppers, the brand is perceived as somewhat old-fashioned and a bit irrelevant,” he noted.