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Eddie Bauer Files for Third Bankruptcy
10 Feb
Summary
- Eddie Bauer has filed for bankruptcy for the third time in over two decades.
- Most stores will remain open during restructuring, with a sales process underway.
- E-commerce and wholesale operations are unaffected and run by a separate entity.
Eddie Bauer LLC has initiated its third bankruptcy filing in just over two decades, entering into a restructuring agreement with secured lenders. This filing impacts U.S. and Canadian store operations. Most Eddie Bauer retail and outlet stores in these regions will continue operating, but the company plans to close certain locations as part of the restructuring. A court-supervised sales process is currently in motion, with a potential wind-down of North American retail operations if no buyer emerges.
Independent of the bankruptcy, Eddie Bauer's e-commerce and wholesale businesses will not be affected. These operations are managed separately by Outdoor 5 LLC. Authentic Brands Group continues to hold the intellectual property rights for the Eddie Bauer brand. Stores operated by other licensees outside the U.S. and Canada are also not part of this Chapter 11 filing and will remain open.
The company cited challenges including increased costs due to inflation and tariff uncertainty, exacerbating pre-existing difficulties. Retail analysts note the brand has struggled to compete with newer, technically focused rivals and faces concerns about product quality, with some viewing the brand as outdated.
