Outdoor brand Eddie Bauer closes its stores amid bankruptcy

Eddie Bauer, the iconic clothing and outdoor recreation company, has filed for Chapter 11 bankruptcy.

However, the Seattle-based chain has not issued a public statement announcing this. Neither has Catalyst Brands, which holds the rights to operate Eddie Bauer stores.

This is the chain's third bankruptcy filing. The first occurrence was in 2003, when its then-parent company, Spiegel Inc., filed for bankruptcy, leading to the closure of many Eddie Bauer stores. The second was in 2009, when the company suffered heavy debt and low sales amidst the latest recession.

"This is not an easy decision," Marc Rosen, CEO of Catalyst Brands, said. "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."

The recent bankruptcy follows budget cuts and employee layoffs that occurred in January of this year. The company's assets include over 100,000 creditors, estimated assets worth $100 to $500 million, and estimated liabilities at $1 to $10 billion.

"While the leadership team at Catalyst was able to make significant strides in the brand, including rapid improvements in product development and marketing, those changes could not be implemented fast enough to fully address the challenges created over several years,” he also said.

The bankruptcy will result in the closure of around 200 stores across North America. Stores have closed in states like Ohio and Michigan. However, Fast Company stated that the bankruptcy will not impact Eddie Bauer’s overseas, e-commerce, and wholesale operations.

Prithvi Sudhakar is a fourth-year majoring in cybersecurity. To contact him, email pzs5683@psu.edu.