The operator of approximately 180 Eddie Bauer stores across the United States and Canada has filed for Chapter 11 bankruptcy protection, citing declining sales and a range of challenges facing the retail industry. This marks the third bankruptcy filing for the historic brand, which originated as a fishing shop in Seattle and is known for its outdoor apparel, including the equipping of the first American to summit Mount Everest.
Eddie Bauer LLC announced its restructuring agreement with secured lenders upon filing in the U.S. Bankruptcy Court for the District of New Jersey. Although most retail and outlet stores in the U.S. and Canada will remain operational, certain locations will be gradually closed as part of the restructuring. The company plans to undergo a court-supervised sales process; if a sale cannot be realized, it will initiate a wind-down of its operations in those regions.
“This is not an easy decision,” commented Marc Rosen, CEO of Catalyst Brands, the entity licensed to manage Eddie Bauer stores in North America. He emphasized that this restructuring aims to optimize stakeholder value and maintain liquidity for the company.
Notably, Eddie Bauer stores operating outside of the U.S. and Canada are managed by different licensees and are not part of the Bankruptcy filing, ensuring their continued operation. Ownership of the Eddie Bauer intellectual property resides with Authentic Brands Group, which may license the brand to other operators. The bankruptcy filing will not impact other brands under the Catalyst umbrella, nor will it affect Eddie Bauer’s e-commerce and wholesale operations, which are managed by Outdoor 5, LLC.
This filing aligns Eddie Bauer with a growing trend among U.S. retailers that are either closing stores or reorganizing under bankruptcy protections to streamline operations and focus on profitability. Other notable retail actions include Saks Fifth Avenue’s recent bankruptcy filing due to increased competition and significant debt stemming from its acquisition of Neiman Marcus, in addition to Amazon’s closures of various Go and Fresh locations as it pivots its business strategy.
Founded by outdoor enthusiast Eddie Bauer in 1920, the company began as Bauer’s Sports Shop in Seattle. After successfully crafting over 50,000 military jackets, the company embraced a mail-order model in 1945. Its innovative designs include the Skyliner, introduced in 1936, which became the first patented down-insulated jacket in America. Bauer’s legacy also includes outfitting James W. Whittaker, the first American to conquer Mount Everest, in a parka during his historic ascent in 1963.
Following Bauer’s retirement in 1968, the brand transitioned towards casual apparel and changed hands several times, first acquired by General Mills in 1971 and then by Spiegel Inc. in 1988. After a bankruptcy filing in 2003, Eddie Bauer emerged from reorganization in 2005, only to file again in 2009 and be acquired by Golden State Capital shortly thereafter. In 2021, the brand was bought by Authentic Brands and SPARC Group LLC.
Rosen noted that prior to the formation of Catalyst Brands, Eddie Bauer was already encountering challenges, which have intensified over the past year due to rising operational costs, inflation, and tariff uncertainties. While the leadership made strides in product development and marketing, the impact of these efforts did not materialize quickly enough to remedy longstanding issues.
Historically, Eddie Bauer boasted nearly 600 locations at its peak in 2001. Recent analysis highlights that while the brand remains recognizable, it has struggled to keep up with competitors such as Swedish brand Fjallraven and Canada’s Arc’teryx. Issues concerning product quality and an outdated image among younger consumers have further compounded its challenges in the competitive outdoor apparel market.
