Eddie Bauer Store Operator Files Chapter 11, Seeks White Knight to Keep Stores Open

Core Viewpoint - Eddie Bauer LLC has filed for Chapter 11 bankruptcy, indicating significant challenges in its retail operations and a restructuring plan to close most of its store fleet [1][3][4] Group 1: Bankruptcy Filing and Store Operations - The company entered a restructuring support agreement with secured lenders and filed a voluntary Chapter 11 petition in the U.S. Bankruptcy Court for New Jersey [1] - The bankruptcy filing does not affect Eddie Bauer's e-commerce or wholesale operations, nor its approximately 20 stores in Japan [2] - The Chapter 11 filing allows the company to close remaining stores, with liquidation sales already underway at around 40 units whose leases expired at the end of January [3][4] Group 2: Future Prospects and Sales Process - There is potential for another entity to acquire the store operating rights, with several companies expressing interest, pending bankruptcy court approval [4] - Eddie Bauer LLC plans to conduct liquidation sales while pursuing a value-maximizing sale of all or part of its store operations [4] Group 3: Operational Challenges - The CEO of Catalyst Brands noted that Eddie Bauer faced declining sales and supply chain challenges even before the formation of Catalyst, with these issues worsened by inflation and tariff uncertainties [6] - Despite improvements in product development and marketing, the changes were insufficient to address long-standing challenges [6]