Eddie Bauer’s new owner plans to keep most stores, staff

Seattle Private-equity firm Golden Gate Capital won a bankruptcy court auction for Eddie Bauer’s assets and plans to keep most of its stores and employees.

Golden Gate’s all-cash bid of $286 million will be presented to the court for approval on Wednesday, and is expected to close in early August.

Stockholders in Eddie Bauer are not expected to get anything when the proceeds of the auction are distributed, the company said.

As part of its purchase agreement, Golden Gate will keep at least 300 of Eddie Bauer’s 370 stores in the United States and Canada.

Golden Gate last month bought women’s clothier J.Jill from Talbots for $75 million. It paired with Sun Capital Partners in 2007 on a $285 million offer for Eddie Bauer that was ultimately rejected by shareholders.

Eddie Bauer filed for Chapter 11 bankruptcy protection last month in Delaware, blaming a crushing debt burden that it was forced to take on after emerging from the Spiegel bankruptcy in 2005, as well as the current recession.