RCS selected as Eddie Bauer LLC's real estate consultant for bankruptcy
Eddie Bauer LLC has tapped a national real estate advisory firm as it navigates its bankruptcy.
The operator of the outdoor apparel brand’s retail stores, which filed for Chapter 11 bankruptcy earlier this month, has retained RCS Real Estate Advisors to serve as its exclusive real estate consultant in connection with the proceedings. In this role, RCS will advise on all real estate matters.
The filing, which took place in the U.S. Court for Bankruptcy in the District of New Jersey, doesn’t affect Eddie Bauer’s e-commerce or wholesale operations. As of Feb. 2, they are run separately by Outdoor 5 LLC.
Eddie Bauer LLC, part of the Catalyst Brands portfolio, operates approximately 180 stores across 43 states and Canada. RCS’s retention remains subject to approval by the U.S. Bankruptcy Court.
In court documents, Eddie Bauer’s physical store operations had liabilities of more than $1 billion (to $10 billion). Its assets were put at $100 million to $500 million. Eddie Bauer’s retail stores outside of the United States and Canada are operated by other licensees and are not included in the Chapter 11 filings.
Should Eddie Bauer pursue a sale transaction as part of the process, RCS can also negotiate potential portfolio-related modifications that may be required by buyers, including extensions, rent relief, rent holidays and other restructuring measures. The firm says it will further assess opportunities to market select leases where value may be realized as certain store locations wind down.
[READ MORE: RCS secures lease agreements to keep Claire's stores open]
“When a retailer enters Chapter 11, the real estate portfolio becomes a central consideration,” said Ivan Friedman, CEO of RCS Real Estate Advisors. “Our responsibility is to analyze the leases, advise on strategic options and help manage the portfolio in a way that protects stakeholders and maximizes any available value.”
