Eddie Bauer Files for Bankruptcy, Seeks Quick Sale
Eddie Bauer has been around since 1920, but the 370-store
apparel chain is looking at its second Chapter 11 bankruptcy filing since
The turnaround under the court’s protection could be pretty
quick if CCMP Capital Advisors LLC is given permission to buy the chain
for the $202 million it has proposed. CCMP has agreed to buy Eddie Bauer,
assuming its offer is not topped by another bidder, and operate it as an
The chain, which is targeted to adults 30 – 54 with an average
annual income of $77,000, has not made a profit in three years, according
to a Bloomberg report.
Neil Fiske, president and chief executive officer of Eddie
Bauer, said in a press release, “Eddie Bauer is a good company with a great
brand and a bad balance sheet. This process will allow the business to
emerge with far less debt, positioned for growth as the economy recovers
and as our new products gain traction. We expect this process to be completed
very quickly, protecting our employees and critical vendor partners every
step of the way.
“We have made good progress on our turnaround strategy of
returning Eddie Bauer to its heritage as an active outdoor brand and have
exciting new product launches on the way to market, including First Ascent,
our return to expedition-grade outerwear and gear. Unfortunately, a crushing
debt burden placed on the company from the Spiegel reorganization in 2005,
combined with the severe, prolonged recession, have left us with no choice
but to use this process to reduce the debt load on the business.”
Discussion Questions: What would
you say is the outlook for Eddie Bauer? What will the company need
to do if it is to turn its business around?
Bauer Files Bankruptcy, Plans Sale to CCMP – Bloomberg
- Eddie Bauer Files for Chapter 11 Bankruptcy Protection;
Enters Into Bid Agreement With Private Equity Firm That Plans To Continue
Eddie Bauer Holdings, Inc.