Eddie Bauer’s Retail Operator Has Formally Filed for Chapter

The working entity behind Eddie Bauer’s North American shops has formally filed for chapter.

Eddie Bauer LLC, an entity of retail holding firm Catalyst Manufacturers, which licenses the rights to function Eddie Bauer shops throughout the US and Canada, filed for Chapter 11 in federal chapter court docket in New Jersey on Monday.

The transfer places the long-lasting American outside attire chain’s almost 200 shops all through the US and Canada liable to closure.

Underneath the Chapter 11 restructuring plan, the corporate stated it should conduct liquidation gross sales at Eddie Bauer shops “whereas persevering with to pursue an ongoing sale course of to conduct an expeditious, value-maximizing going concern sale of all or a part of its retailer operations.”

“Within the occasion of a sale, the Retail Firm might depart from a full wind down of operations to facilitate a going-concern transaction,” the working entity stated.

If no purchaser emerges, the retailer is anticipated to shut down its shops throughout North America.

Within the meantime, Eddie Bauer retail and outlet shops within the US and Canada will stay open as the corporate begins shutting down sure shops, it stated.

The retailer has been “in a challenged state of affairs, with declining gross sales, provide chain challenges and different points” since earlier than the creation of Catalyst Manufacturers final 12 months, Marc Rosen, the CEO of Catalyst Manufacturers, stated in an announcement.

“Over the previous 12 months, these challenges have been exacerbated by varied headwinds, together with elevated prices of doing enterprise on account of inflation, ongoing tariff uncertainty, and different elements,” stated Rosen.

The chapter submitting stated that Eddie Bauer LLC has greater than 100,000 collectors. The corporate listed its estimated property at $100 million to $500 million and its estimated liabilities at $1 billion to $10 billion.

The Chapter 11 submitting doesn’t have an effect on Eddie Bauer’s manufacturing, wholesale, or e-commerce operations, nor its retail enterprise outdoors the US and Canada. Japan is dwelling to a number of Eddie Bauer shops.

Final month, Genuine Manufacturers Group, which owns the Eddie Bauer model and IP worldwide, introduced that it was transitioning the licenses for Eddie Bauer’s manufacturing, e-commerce, and wholesale operations in North America from Catalyst to Out of doors 5.

Eddie Bauer has battled chapter proceedings earlier than

The Eddie Bauer model, one of many oldest in American outside attire, has constructed its status on sturdy, modern gear and clothes designed to face up to excessive circumstances.

It was based in Seattle in 1920 by outdoorsman Eddie Bauer, who 20 years later patented the primary quilted goose-down jacket within the nation after a near-fatal expertise with hypothermia.

Over its greater than a century-long historical past, the model has handled Chapter 11 chapter proceedings twice earlier than.

The primary time was in 2003 when its then-parent firm, Spiegel, filed for chapter. Eddie Bauer emerged from that chapter two years later as a stand-alone firm.

Going through mounting debt, the retailer filed for Chapter 11 in 2009 and was acquired by non-public fairness agency Golden Gate Capital later that 12 months by way of a chapter public sale.

In 2021, Eddie Bauer was acquired by Genuine Manufacturers Group, in partnership with SPARC Group (which has since turn into Catalyst Manufacturers).