Eddie Bauer closes asset sale with Golden Gate Capital

SEATTLE, Wash. Eddie Bauer announced that it has completed the previously announced sale of its assets and operations to Golden Gate Capital for $286 million. Eddie Bauer will operate as a newly formed company, will continue to serve its customers as usual, and will be better positioned for future success.

Eddie Bauer will have the benefit of a much stronger balance sheet, little or no long-term debt and a substantially lower cost structure. Golden Gate Capital has indicated its support for management and their strategy of refocusing the brand on its rich outdoor heritage. Eddie Bauer plans to maintain the substantial majority of its stores and employees. Under Golden Gate's ownership, Eddie Bauer will benefit from having a well-capitalized partner with extensive expertise in multi-channel specialty retail.

Neil Fiske, president and CEO of Eddie Bauer, said, "We are delighted to have Golden Gate Capital as our partner in building Eddie Bauer as a great American brand. Golden Gate has a proven track record and knows our industry well. We will benefit immensely from the value and capability they will bring to Eddie Bauer. With key new product launches slated for Fall and Holiday, a healthy balance sheet and a lower cost structure, we will be well positioned to grow Eddie Bauer. This is an excellent result for our people, our customers, our business partners and the communities we serve. We look forward to an exciting new chapter in the Eddie Bauer story."