Eddie Bauer Stores Operator Files for Bankruptcy in US and Canada
Eddie Bauer LLC has filed for Chapter 11 bankruptcy protection. The retailer intends to sell around 200 outdoor sportswear stores across the United States and Canada. This decision comes amid declining sales and ongoing supply chain issues.
Factors Leading to Bankruptcy Filing
The company’s financial difficulties have been worsened by several factors. Notably, uncertainties in tariff policies during the Trump administration contributed to their struggles. Additionally, inflation has pressured their sales.
- Declining sales
- Supply chain challenges
- Uncertain tariff policies
- Inflation impacts
Store Operations and Future Plans
While Eddie Bauer is seeking a buyer, most of its stores will continue operations. However, should the sale process fail, closures in the US and Canada may become necessary. The exact timing for potential store closures remains unconfirmed.
Company History and Previous Bankruptcies
This marks Eddie Bauer’s third bankruptcy filing in its history, spanning over a century. Previous bankruptcies occurred in 2003 and 2008, prompted by market downturns.
Current Store Operations Outside North America
Locations outside the US and Canada will remain operational. These stores are run by other licensees independent of the Eddie Bauer LLC filing.
Transition of Online Sales
The transition of online sales and wholesale operations is planned to shift to Outdoor 5 LLC. This move aims to maintain access to e-commerce for Eddie Bauer customers.
Industry Context
Eddie Bauer is not alone in facing financial challenges. Saks Global also filed for bankruptcy in January, citing similar difficulties in the retail sector. High debt levels and shifts in the luxury market have affected several prominent retailers this year.
Marc Rosen, CEO of Catalyst Brands, which owns Eddie Bauer, expressed gratitude towards employees and customers throughout this transition. The company aims to mitigate adverse impacts on stakeholders during this challenging time.
