On Monday, Eddie Bauer LLC filed for Chapter 11 bankruptcy protection, aiming to divest roughly 200 namesake outdoor apparel stores across the United States and Canada, citing diminished sales performance and supply chain disruptions.
The firm indicated that its financial hardships were exacerbated by factors including the Trump administration’s unpredictable tariff strategy and rising inflation.
The majority of the outfitter’s locations will continue operating while the company seeks a buyer. However, Eddie Bauer stated that if this search proves unsuccessful, its US and Canadian company-operated stores could cease operations. A company representative informed CNN via email that the timing for potential individual store closures could not yet be specified.
Mark Rosen, CEO of Catalyst Brands, which owns the Eddie Bauer brand, commented, “While Catalyst management achieved noteworthy progress with the brand, including rapid upticks in product design and marketing efforts, these adjustments could not be implemented quickly enough to fully counteract challenges that had materialized over several years.”
This marks the third time the over-100-year-old company has sought bankruptcy protection, following previous Chapter 11 filings in 2003 and again six years later amid the 2008 financial crisis.
Eddie Bauer stores situated outside the US and Canada will keep their doors open, as those operations are managed by separate licensees, according to a company press release. The brand’s e-commerce and wholesale activities will be transferred to another entity, Outdoor 5 LLC, ensuring online shopping remains accessible.
This brand is not the first major retailer to seek bankruptcy protection this year. Saks Global filed in January amidst a broader downturn in the luxury market segment and substantial debt incurred from acquiring its upscale rival, Neiman Marcus.
Rosen shared, “This was not an easy determination, and we express our gratitude to the Retail Company’s employees and patrons for their steadfastness and belief in us.” He added, “We are focused on lessening the impact on the retail company’s staff, vendors, customers, and other stakeholders.”
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