The retailer, which runs around 180 Eddie Bauer stores across the U.S. and Canada, has filed for Chapter 11 bankruptcy. This decision comes amidst falling sales and various challenges faced across different sectors.
This marks the third time in two decades that Eddie Bauer has sought bankruptcy protection. The brand has a rich history, beginning as a fishing tackle business in Seattle and later outfitting the first Americans to summit Mount Everest. It also produced numerous innovative down jackets and sleeping bags for the military during World War I.
On Monday, Eddie Bauer LLC announced that it has entered a reorganization agreement with its secured lenders, as detailed in a filing with the U.S. Bankruptcy Court for the District of New Jersey.
Many of Eddie Bauer’s retail and outlet locations in the U.S. and Canada will still operate, although some may reduce their hours. The company stated it would pursue a formal sale process supervised by the court, with plans to wind down operations in the U.S. and Canada if a sale does not materialize.
Mark Rosen, CEO of Catalyst Brands, which manages Eddie Bauer stores in these regions, acknowledged the difficulty of this choice. “This isn’t an easy decision,” he said. “However, this reorganization is the best way to optimize value for the company’s stakeholders and ensure that Catalyst Brands remains profitable while maintaining strong liquidity and cash flow.”
Stores located outside the U.S. and Canada are managed by different licensees and won’t be part of the Chapter 11 filing, hence will continue to operate normally.
Authentic Brands Group retains ownership of the Eddie Bauer intellectual property and may license it to other companies. The company clarified that operations of other brands under Catalyst Brands are unaffected by the filing.
Interestingly, Eddie Bauer’s online sales and wholesale operations are also not impacted, as they are run by a company named Outdoor 5, LLC, a transition that took effect in early February.
This bankruptcy marks Eddie Bauer’s entry into a growing trend among U.S. retailers who are closing stores amid financial reorganization or a shift to focus on more profitable endeavors.
Last month, the parent company of Saks Fifth Avenue announced its own bankruptcy filing, struggling with rising competition and significant debt, particularly after acquiring Neiman Marcus a year ago. Just days later, they disclosed plans to close the majority of their Saks Off 5th stores.
Moreover, Amazon recently indicated its intention to shutter most of its Amazon Go and Amazon Fresh locations within a few days, reallocating its focus on food delivery and the Whole Foods Market grocery chain.
According to its website, Eddie Bauer was founded in 1920 by an enthusiastic outdoorsman in Seattle, initially known as Bauer’s Sports Shop. After supplying over 50,000 jackets to the military by 1945, the company began a mail-order catalog.
The website further describes Bauer’s establishment as a gathering place for outdoor enthusiasts to connect, learn, and share experiences.
In 1936, they introduced the “Skyliner,” an insulated jacket made from American goose down, the first of its kind to receive a patent. In 1963, a Bauer hoodie was worn by James W. Whitaker, who became the first American to reach the summit of Mount Everest.
Following Bauer’s retirement in 1968, the brand moved toward casual apparel and changed ownership several times—first acquiring by General Mills in 1971, then by Spiegel in 1988. After Spiegel’s bankruptcy in 2003, the remaining assets were reorganized as Eddie Bauer Holdings in 2005.
In June 2009, Eddie Bauer again filed for bankruptcy, subsequently being purchased by Golden State Capital the following month. Authentic Brands and SPARC Group LLC took ownership in 2021.
Notably, Catalyst was established last year from a merger between SPARC and J.C. Penney, acquiring Eddie Bauer out of bankruptcy with support from Simon Property Group and Brookfield.
Rosen pointed out that even before establishing Catalyst Brands, Eddie Bauer was facing severe challenges. “Over the last year, those difficulties have intensified due to factors like rising business costs from inflation and persistent tariff uncertainties,” he added.
Despite previous leadership efforts to enhance product development and marketing, those initiatives were not implemented rapidly enough to remedy long-standing issues.
At its peak in 2001, Eddie Bauer boasted nearly 600 stores, as per data from commercial real estate firm KoStar Group.
Neil Saunders, Managing Director of GlobalData Retail, noted that while Eddie Bauer’s name is widely recognized, it struggles to compete with brands like Sweden’s Fjällräven and Canada’s Arc’teryx. He also pointed out that product quality issues disproportionately affect outdoor brands, where performance is key.
“For many younger consumers, the brand appears somewhat outdated and less relevant,” he observed.
