Eddie Bauer stores across North America are on the brink of closing after the company’s operator failed to secure a buyer during its Chapter 11 bankruptcy process.
Eddie Bauer retailer Eddie Bauer LLC, which operates the brand’s stores in the United States and Canada under a licensing agreement, did not receive any qualified bids for its assets by a March 3 deadline, according to a notice filed in the US Bankruptcy Court in New Jersey.
Because no bidders emerged, a planned auction scheduled for March 6 was canceled.
The Seattle-based clothing retailer filed for Chapter 11 bankruptcy on February 9, citing declining sales, supply chain challenges and other financial pressures. The filing was made by Eddie Bauer LLC, a division of Catalyst Brands, which holds the license to operate about 180 Eddie Bauer stores across the US and Canada.
With no buyer in place, the company said it will continue store-closing sales at all of its brick-and-mortar locations “unless and until a more value-maximizing transaction becomes available,” according to the court filing.
This marks the third bankruptcy filing for Eddie Bauer, following earlier filings in 2003 and 2009, deepening the long decline of a once-iconic company that began as a small Seattle fishing shop in 1920 and grew into a nationally recognized brand. At its peak in 2001, Eddie Bauer operated nearly 600 stores worldwide, according to data from CoStar Group Inc.
Eddie Bauer LLC declined The Independent’s request for comment, offering no statement beyond its February 9 press release.
It was previously reported that the retailer operates about 175 to 180 stores across North America, all slated to close by April 30 unless a buyer emerges, while roughly 174 store leases, spanning more than 1.08 million square feet across 40 US states and six Canadian provinces, are being marketed by RCS Real Estate Advisors.
Many of the leases are in key retail markets such as California, Pennsylvania, Washington, Wisconsin, Minnesota, New York, Michigan and New Jersey, according to RCS.
“As part of the Chapter 11 process, we are focused on maximizing value and identifying opportunities for landlords, retailers and other uses seeking quality retail space in proven trade areas,” Ivan Friedman, President and CEO of RCS Real Estate Advisors, previously said in a statement. “This portfolio represents a rare opportunity to secure legacy retail locations in established centers nationwide. Our team is actively engaging the market to drive competitive interest and efficient lease dispositions.”
Customers have just one day left to use any remaining Eddie Bauer gift cards and Adventure Points in stores by March 12, after which they will lose their value as liquidation sales continue and all purchases remain final with no returns accepted.
Despite the bankruptcy and store closures, the Eddie Bauer brand itself is not disappearing entirely. Its online, manufacturing, wholesale operations, and stores outside the US and Canada remain untouched.
The brand itself remains intact, with its intellectual property owned by Authentic Brands Group, which plans to focus on technical innovation, digital growth, and the return of the high-performance First Ascent line. Outdoor 5 LLC will continue managing the brand’s e-commerce, wholesale, and product development in the US and Canada.
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