By ANNE D’INNOCENZIO, Associated Press Business Writer
NEW YORK (AP) — The operator of roughly 180 Eddie Bauer stores across the U.S. and Canada has filed for Chapter 11 bankruptcy protection.
Eddie Bauer LLC said Monday it had entered into a restructuring pact with its secured lenders as it made the filing in the U.S. Bankruptcy Court for the District of New Jersey.
The bankruptcy filing marks the third time in a matter of a little over two decades for the storied-but-now-tired brand that began as a Seattle fishing shop, later outfitted the first American to climb Mount Everest and made thousands of newfangled down jackets and sleeping bags for the military during World War I.
According to the release, Eddie Bauer retail and outlet stores in the U.S. and Canada will remain open and continue serving customers as the company begins its process of winding down certain stores. It noted that it will conduct a court-supervised sales process, and if a sale can’t be executed, it will begin a wind-down of its U.S. and Canadian operations.
“This is not an easy decision,” said Marc Rosen, CEO of Catalyst Brands, which maintains the license to operate Eddie Bauer stores in the U.S. and Canada. “However, this restructuring is the best way to optimize value for the retail company’s stakeholders and also ensure Catalyst Brands remains profitable and with strong liquidity and cash flow.”
Eddie Bauer’s retail store locations outside of the U.S. and Canada are operated by other licensees, are not included in the Chapter 11 filings, and will continue operating in the ordinary course.
Authentic Brands Group continues to own the intellectual property associated with the Eddie Bauer brand and may license the brand to other operators, the company said. The operations of other brands in the Catalyst Brands portfolio are not affected by this filing and will continue in the normal course, according to the release.
Eddie Bauer’s e-commerce and wholesale operations will not be impacted by the wind down, as they are operated by a company called Outdoor 5, LLC.