Eddie Bauer has commenced a search for a buyer for its store operations across North America following a Chapter 11 bankruptcy filing in the United States, with plans to seek parallel court protection in Canada. The outdoor apparel retailer stated that stores in both countries will remain open as liquidation sales begin.
Canadian Operations at Risk
The company's Canadian footprint, which includes 31 stores primarily located in Ontario, Alberta, and British Columbia, faces potential closure if a suitable buyer is not secured. Eddie Bauer has explicitly warned that it will proceed with an orderly wind-down of its U.S. and Canadian store networks should sale efforts prove unsuccessful.
In financial disclosures, Eddie Bauer LLC reported estimated assets between $100 million and $500 million, with liabilities ranging from $1 billion to $10 billion, and listed over 100,000 creditors. The retailer has filed motions to continue paying employee wages and benefits during the process.
Restructuring Strategy
The company is pursuing a "dual-path" approach, conducting store liquidation sales while simultaneously seeking a going-concern sale of all or part of its retail business. Eddie Bauer emphasized that its e-commerce and wholesale divisions, operated separately under Outdoor 5 and other licensees, are not included in the bankruptcy filing and will continue normal operations.
Retail analysts note the brand has struggled with relevance and product quality in a competitive market dominated by rivals like Patagonia and The North Face. This marks the third time the century-old retailer, founded in Seattle in 1920, has entered creditor protection, following previous proceedings in 2003 and 2009.