Eddie Bauer operator files for bankruptcy with hundreds of stores at risk of closing

The operator of roughly 180 Eddie Bauer stores across the US and Canada has filed for Chapter 11 bankruptcy protection, blaming declining sales and a litany of other industry headwinds.The bankruptcy filing marks the third time in 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.Eddie Bauer LLC said Monday it had entered into a restructuring pact with its secured lenders as it made the filing in the US Bankruptcy Court for the District of New Jersey.Most Eddie Bauer retail and outlet stores in the US and Canada will remain open as the company winds down certain locations.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 US 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 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 stores outside the US and Canada are operated by other licensees, are not included in the Chapter 11 filings, and will stay open, according to the release.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 company.Eddie Bauer’s e-commerce and wholesale operations will also not be impacted by the wind-down, as they are operated by a company called Outdoor 5, LLC.

That was a transition it made in January a...