Eddie Bauer operator files for bankruptcy — with – Business News
The operator of roughly 180 Eddie Bauer shops throughout the US and Canada has filed for Chapter 11 bankruptcy safety, blaming declining gross sales and a litany of different industry headwinds.
The bankruptcy submitting marks the third time in a little over 20 years for the storied however now drained model that started as a Seattle fishing store, later outfitted the primary American to climb Mount Everest and made 1000’s of newfangled down jackets and sleeping baggage for the army during World War I.
Eddie Bauer LLC mentioned Monday it had entered into a restructuring pact with its secured lenders because it made the submitting within the US Bankruptcy Court for the District of New Jersey.
The operator of roughly 180 Eddie Bauer shops throughout the US and Canada has filed for Chapter 11 bankruptcy safety, blaming declining gross sales and a litany of different industry headwinds. MediaPunch / BACKGRID
Most Eddie Bauer retail and outlet shops within the US and Canada will stay open because the company winds down sure places. It famous that it’s going to conduct a court-supervised gross sales course of, and if a sale can’t be executed, it would start a wind-down of its US and Canadian operations.
“This is not an easy decision,” mentioned Marc Rosen, CEO of Catalyst Brands, which maintains the license to operate Eddie Bauer shops within the US 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 shops exterior the US and Canada are operated by different licensees, aren’t included within the Chapter 11 filings, and can keep open, in keeping with the release.
Authentic Brands Group continues to own the mental property related with the Eddie Bauer model and will license the model to different operators, the company mentioned. The operations of different manufacturers within the Catalyst Brands portfolio aren’t affected by this submitting and can proceed within the regular course, in keeping with the company.
Eddie Bauer’s e-commerce and wholesale operations can even not be impacted by the wind-down, as they’re operated by a company known as Outdoor 5, LLC. That was a transition it made in January and have become efficient Feb. 2.
Most Eddie Bauer retail and outlet shops within the US and Canada will stay open because the company winds down sure places. MediaPunch / BACKGRID
Eddie Bauer joins a growing checklist of US retailers this yr which are closing shops, as corporations reorganize beneath bankruptcy safety or pare their operations to concentrate on essentially the most profitable companies.
The mother or father company of Saks Fifth Avenue mentioned final month it was in search of bankruptcy safety, buffeted by rising competitors and the large debt it took on to buy its rival within the luxurious sector, Neiman Marcus, simply over a yr in the past. Just a few days later, the mother or father company mentioned it was closing most of its Saks Off fifth shops.
Amazon mentioned earlier this month that it was closing nearly all of its Amazon Go and Amazon Fresh places within days because it narrows its concentrate on food supply and its grocery chain, Whole Foods Market.
Eddie Bauer’s namesake founder — an avid outdoorsman — began the company in Seattle in 1920 as Bauer’s Sports Shop, in keeping with the model’s web site. In 1945, after making more than 50,000 jackets for the army, it launched a mail-order catalog.
The mother or father company of Saks Fifth Avenue mentioned final month it was in search of bankruptcy safety, buffeted by rising competitors and the large debt it took on to buy its rival within the luxurious sector, Neiman Marcus, simply over a yr in the past. REUTERS
“Bauer’s Sports Shop was not just a place where people purchased clothing and gear, it was a community hub where folks gathered to share their wisdom, learn, and talk about their experiences in the outdoors,” the web site says.
The company created an American goose-down insulated jacket, often known as the “Skyliner,” in 1936, and it turned the company’s first patented jacket. It additionally outfitted the primary American to climb Mount Everest — James W. Whittaker — with an Eddie Bauer parka in 1963.
After Bauer retired in 1968 and bought the business to his companion, the out of doors model shifted more towards informal attire and was purchased by General Mills Inc. in 1971 after which by Spiegel Inc. in 1988. After Spiegel filed for bankruptcy in 2003 and most of its belongings have been bought, the rest of the company was reorganized in 2005 as Eddie Bauer Holdings Inc.
Eddie Bauer’s namesake founder — an avid outdoorsman — began the company in Seattle in 1920 as Bauer’s Sports Shop, in keeping with the model’s web site. AP
In June 2009, Eddie Bauer filed bankruptcy and was acquired by Golden State Capital the next month. In 2021, it was acquired by Authentic Brands and SPARC Group LLC.
A yr in the past, Catalyst was shaped by the merger of SPARC and JCPenney, which Simon Property Group and fellow mall landlord Brookfield purchased out of bankruptcy.
Rosen famous that even previous to the inception of Catalyst Brands final yr, Eddie Bauer was in a “challenged situation.”
“Over the past year, these challenges have been exacerbated by various headwinds, including increased costs of doing business due to inflation, ongoing tariff uncertainty, and other factors,” he mentioned.
Amazon mentioned earlier this month it was closing nearly all of its Amazon Go and Amazon Fresh places within days because it narrows its concentrate on food supply and its grocery chain, Whole Foods Market. MediaPunch / BACKGRID
He famous that whereas Catalyst’s management was in a position to make enhancements in product development and advertising, these modifications couldn’t be applied fast enough to completely tackle the issues created over a number of years.
Eddie Bauer had almost 600 shops at its peak in 2001, in keeping with CoStar Group Inc., a industrial real estate knowledge firm.
In a observe revealed earlier this month, Neil Saunders, managing director of GlobalData Retail, wrote that whereas the Eddie Bauer identify is “well known,” the model hasn’t saved tempo with rivals like Swedish out of doors model Fjallraven and Canadian label Arc’teryx. He additionally cited points with high quality deteriorating, which, for an out of doors model measured by the efficiency of its merchandise, may be very problematic.
“And for many younger shoppers, the brand is seen as somewhat old-fashioned and a bit irrelevant, ” he famous.
