George S. May Business Blog

Eddie Bauer tells creditors to take a hike

Outdoor retailer Eddie Bauer filed for Chapter 11 bankruptcy, today, in a Delaware court after nearly 90 years in business. The company will be sell its assets to CCMP Capital Advisors for an offered $202 million or a higher bidder at auction. Eddie Bauer is also seeking protection in Canada under the country’s Companies’ Creditors Arrangement Act. Khaki enthusiasts, fret not, Eddie Bauer has a $100 million debtor-in-possession financing commitment and doesn’t plan to close its stores during the bankruptcy.

Eddie Bauer also pointed toward seeking a $100 million loan from a group of lenders, led by Bank of America, calling the amount “ample” liquidity needed to meet its ongoing obligations during the sale process.
” Eddie Bauer is a good company with a great brand and a bad balance sheet,” Eddie Bauer Chief Executive Neil Fiske (pictured left) said in a statement Wednesday. “This process will allow the business to emerge with far less debt.”

Some may remember that this is actually Eddie Bauer’s second trip to bankruptcy court. The first came in 2003 after former owner, Spiegel LLC, made the decision to change the direction of Eddie Bauer’s women’s clothing line to a more casual style.

Eddie Bauer has 7,700 U.S. employees and 933 Canadian employees, with products available at about 370 retail and outlet stores throughout the U.S. and Canada.

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