Longtime outdoor apparel retailer Eddie Bauer may close its 200 brick-and-mortar storefronts across North America as its retail operator looks to file Chapter 11 bankruptcy, according to a report.
Eddie Bauer’s retail operator is preparing to file for Chapter 11 bankruptcy and will shut down approximately 200 stores across North America, WWD reported.
The Eddie Bauer store operations are owned by Catalyst Brands, which was formed last year by Simon Property Group, Brookfield Corp., Authentic Brands Group and Shein. The company includes brands such as Lucky Brand, Aéropostale, Nautica, Brooks Brothers, and JCPenney, as well as Eddie Bauer, according to the report.
A bankruptcy filing would not impact Eddie Bauer’s manufacturing, e-commerce and wholesale operations in the U.S. and Canada, as those operations are in the process of transferring ownership from Catalyst Brands to a new licensee.
The deal to move Eddie Bauer operations to Outdoor 5, a global brand development and licensing platform, was announced last month. Eddie Bauer is expected to file for bankruptcy once that deal has been completed, according to the report.
The Independent has reached out to Catalyst Brands and Outdoor 5 for comment.
The filing would also not impact the remaining 20 Eddie Bauer stores in Japan, according to the report.
Eddie Bauer has been considered a beloved brand in the outdoor industry for over a century. The store’s founder, Eddie Bauer, is credited with developing the first quilted down jacket with a 1940 patent, according to the report.
The company has changed hands several times over the years after its founder sold it in 1968.
Eddie Bauer has also filed for Chapter 11 bankruptcy twice previously, according to The Street.
In 2003, Eddie Bauer’s then-parent company, Spiegel Inc., filed for Chapter 11 bankruptcy, prompting the closure of many stores. The brand emerged from bankruptcy in 2005 after it restructured into a stand-alone company, Eddie Bauer Holdings Inc.
Then, in 2009, Eddie Bauer Holdings Inc. filed for Chapter 11 bankruptcy protection due to heavy debt, decreased sales and recession-related stressors, according to the report.
Eddie Bauer was later acquired out of bankruptcy by private equity firm Golden Gate Capital, for around $286 million.
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