Eddie Bauer LLC, the North American operator of Eddie Bauer stores, filed for Chapter 11 bankruptcy protection on Monday, aiming to divest approximately 200 of its eponymous outdoor apparel shops across the United States and Canada, citing dwindling sales and supply chain disruptions.
The retailer indicated that its financial struggles were compounded by uncertainties surrounding the Trump administration’s tariff strategies and inflationary pressures, among other elements.
The outfitter intends to keep the vast majority of its locations operational while it pursues a buyer. However, should this effort fail, the US and Canadian stores managed by the LLC could face shuttering, the company noted. A company spokesperson stated via email to CNN that they could not specify when individual locations might cease operations.
“While the Catalyst management team successfully propelled significant progress in advancing the brand, incorporating swift enhancements in product development and marketing, these transformations couldn’t materialize quickly enough to fully counteract the challenges that had accumulated over several years,” remarked Mark Rosen, CEO of Catalyst Brands, which licenses the rights to operate the Eddie Bauer retail locations in the US and Canada, in a prepared statement.
This filing marks the century-old brand’s third bankruptcy; the previous Chapter 11 petitions occurred in 2003 and six years later, in the aftermath of the 2008 financial crisis.
Eddie Bauer outlets outside the US and Canada will continue trading as they are managed by separate licensees, according to the company’s press announcement. The company’s e-commerce and wholesale divisions have been transferred to a different entity known as Outdoor 5 LLC, ensuring that online shopping remains accessible.
This brand is not the first major retailer to seek bankruptcy relief this year. Saks Global petitioned for bankruptcy in January amid a broader downturn in the luxury sector and substantial debt incurred from its acquisition of rival luxury firm Neiman Marcus.
“This was a difficult choice to make, and we express our gratitude to the employees and patrons of the Retail Company for their steadfast loyalty and faith,” Rosen commented. “We are actively engaged in efforts to mitigate the impact on the retail company’s personnel, suppliers, consumers, and other involved parties.”
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