Eddie Bauer store operator files for bankruptcy, seeks sale

By Dietrich Knauth

Feb 9 (Reuters) - Eddie Bauer LLC filed for bankruptcy protection in New Jersey on Monday, beginning liquidation sales at 180 outdoor apparel stores in the U.S. and Canada while seeking a buyer for the company’s brick-and-mortar retail business.

The bankruptcy will not impact Eddie Bauer’s online sales, apparel manufacturing or wholesale sales businesses, which are owned and operated separately from the Eddie Bauer-branded retail stores. The bankrupt Eddie Bauer retail company has over $1 billion in debt.

Eddie Bauer, which has sold outdoor sportswear for 106 years, patented the first quilted down jacket, known as the "Skyliner” in 1940.

But the retail company said it has recently struggled with declining sales, supply chain challenges, inflation, and business uncertainty due to unpredictable U.S. tariffs.

Eddie Bauer’s intellectual property is owned by Authentic Brands, which acquired it in 2021, and the company’s online and wholesale sales are operated by Outdoor 5. Catalyst Brands holds the license to operate Eddie Bauer stores in the U.S. and Canada.

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 previously went bankrupt in 2009.