The operator of approximately 180 Eddie Bauer stores has initiated Chapter 11 bankruptcy protection proceedings in the United States, with a similar filing planned shortly in Canada. Declining sales and persistent industry challenges prompted the move for the storied outdoor apparel brand.
Bankruptcy Details and Operations
Eddie Bauer LLC announced a restructuring agreement with secured lenders as part of its U.S. filing in the Bankruptcy Court for the District of New Jersey. An upcoming Canadian court process will safeguard assets there and ensure cross-border enforceability of any sale.
Most retail and outlet stores in the U.S. and Canada remain open during the restructuring, though select locations face closure. The brand operates 31 stores in Canada, primarily in Ontario. Discounts of at least 60% on inventory began last week at some outlets.
A court-supervised sales process is underway. Without a buyer, U.S. and Canadian operations will wind down.
“This is not an easy decision,” stated Marc Rosen, CEO of Catalyst Brands, the licensee operating Eddie Bauer stores in the U.S. and Canada. “However, this restructuring is the best way to optimize value for the retail company’s stakeholders and also ensure Catalyst Brands remains profitable and with strong liquidity and cash flow.”
Stores outside the U.S. and Canada, managed by separate licensees, continue unaffected. Authentic Brands Group retains ownership of the Eddie Bauer intellectual property and could license it to new operators. Other Catalyst Brands portfolio companies operate normally, as do Eddie Bauer’s e-commerce and wholesale segments under Outdoor 5, LLC, following a transition effective February 2.
Brand History and Past Challenges
Founded in 1920 in Seattle as Bauer’s Sports Shop by avid outdoorsman Eddie Bauer, the company evolved from a fishing outpost into a key supplier. It produced over 50,000 down jackets for the military in World War I and launched its patented “Skyliner” goose-down jacket in 1936. In 1963, it equipped James W. Whittaker, the first American to summit Mount Everest, with a signature parka.
The brand shifted to casual apparel post-1968, changing hands through General Mills in 1971, Spiegel in 1988, and subsequent restructurings. It filed for bankruptcy in 2009, acquired by Golden State Capital, and later by Authentic Brands and SPARC Group in 2021. Catalyst Brands emerged last year from a SPARC-JCPenney merger.
Contributing Factors
Rosen highlighted pre-existing struggles intensified by inflation-driven cost increases, tariff uncertainties, and other pressures. Despite advances in product development and marketing, long-term issues persisted.
Retail analyst Neil Saunders observed that while Eddie Bauer remains recognizable, it lags behind competitors like Fjällräven and Arc’teryx. He pointed to declining product quality and a perception among younger consumers as outdated.
Eddie Bauer joins numerous U.S. retailers streamlining via bankruptcy, prioritizing profitable segments amid store closures.
