Eddie Bauer LLC, the retail operator of the brand’s stores in the U.S. and Canada, filed for Chapter 11 bankruptcy protection in New Jersey on Monday.
The operator cited declining sales and supply chain challenges, and more recently, ongoing inflation, tariff uncertainty and other headwinds as reasons for the filing.
It will begin liquidation sales at its 180 Eddie Bauer stores in the U.S. and Canada, and will look for a buyer for its brick-and-mortar store operation.
BAHAMA BREEZE TO CLOSE ALL ITS RESTAURANTS
Founded in Seattle, the brand has sold outdoor sportswear for 106 years. It patented the first quilted down jacket, known as the “Skyliner” in 1940.
Eddie Bauer LLC is a division under Catalyst Brands, which emerged as a new retail holding company in 2025 through a merger between JCPenney and SPARC Group.
“This is not an easy decision,” said Marc Rosen, the CEO of Catalyst Brands, which owns the license to operate Eddie Bauer stores across 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 cashflow.”
The bankrupt Eddie Bauer retail company has $1.7 billion in debt, according to its court filings.
MAJOR FIREARMS DISTRIBUTOR SERVING THOUSANDS OF RETAILERS ACROSS MULTIPLE COUNTRIES FILES FOR BANKRUPTCY
Eddie Bauer retail stores outside the U.S. and Canada are operated by other licensees and are not included in the Chapter 11 filings, according to a press release. The locations will remain open.
None of the other brands under Catalyst will be affected by the filing. The bankruptcy will not impact Eddie Bauer’s manufacturing, wholesale, e-commerce operations or retail operations outside the U.S. and Canada.
Authentic Brands Group owns the Eddie Bauer brand and IP worldwide.
“We have a clear distribution strategy centered on strengthening digital and wholesale channels while maintaining a balanced physical retail presence through strategic partners,” said Authentic Brands Executive Vice President David Brooks. “This approach gives the brand greater flexibility, broader consumer access and a more capital-efficient path to growth. By aligning Eddie Bauer’s channel mix with how customers are choosing to shop today, we’re positioning the brand for long-term, sustainable expansion while protecting the integrity of the brand.”
RESTAURANT GIANT FILES FOR BANKRUPTCY UNDER MASSIVE DEBT SHORTLY AFTER TOUTING MAJOR EXPANSION
The company’s lenders have agreed to support the liquidation plan, with the option to pivot to a sale of the company if a buyer can be quickly found in bankruptcy. Eddie Bauer’s retail and outlet stores will remain open during the bankruptcy sales.
Eddie Bauer aims to get court approval for a potential sale by March 12, according to court filings. Eddie Bauer previously went bankrupt in 2009.
Similar challenges have also pushed several other apparel retailers into bankruptcy in recent months, including high-end department store conglomerate Saks Global, fast-fashion company Forever 21 and women’s apparel and accessory retailer Francesca’s.
Reuters contributed to this report.
Read the full article here
