All Eddie Bauer stores are on the verge of closing after the clothing retailer failed to find a buyer as it filed for Chapter 11 bankruptcy in early March, according to court documents.
Eddie Bauer LLC, operator of Eddie Bauer stores in the United States and Canada and licensee of the Eddie Bauer brand, was unable to find a satisfactory bidder for its assets by a March 3 deadline, according to a notice filed in U.S. Bankruptcy Court in New Jersey. As the retailer did not have qualified bidders for its remaining assets, the auction scheduled for March 6 was cancelled.
The Seattle-based apparel retailer filed for Chapter 11 bankruptcy on Feb. 9, citing declining sales, supply chain challenges and other issues for its current financial situation. The filing was made by Eddie Bauer LLC, a division of Catalyst Brands, which is licensed to operate about 180 Eddie Bauer stores in the United States and Canada.
The Feb. 9 filing is the third time the retailer has filed for bankruptcy, the other two times occurring in 2003 and 2009.
“This is not an easy decision,” Mark Rosen, CEO of Catalyst Brands, said in a statement. “However, this restructuring is the best way to improve value for the retail company’s shareholders while also ensuring that Catalyst Brands remains profitable with strong liquidity and cash flow.”
With Eddy Bauer not finding a buyer, it will continue to close stores at all of its brick-and-mortar locations “unless there is a more value-enhancing transaction,” according to the latest notice.
When contacted by USA TODAY on Saturday, March 7, Eddie Boyer LLC said it “does not comment publicly on anything that has been filed in the company’s court.”
Here’s what to know about Eddie Bauer’s fate.
Despite not finding a bidder as of March 3, Eddie Bauer confirmed it has retained RCS Real Estate Advisors, a national retail real estate consulting firm, to market the 174-store lease. The Eddie Bauer store portfolio includes 150 locations in 40 U.S. states and 24 locations in six Canadian provinces, according to a news release from RCS Real Estate Advisors.
“As part of the Chapter 11 process, we are focused on maximizing value and identifying opportunities for landlords, retailers and other uses seeking quality retail space in established commercial areas,” Evan Friedman, president and CEO of RCS Real Estate Consultants, said in a statement. “This portfolio represents a rare opportunity to secure heritage retail spaces in established centers across the country.”
