Retail operator of Eddie Bauer files bankruptcy, begins store wind down; seeks buyer
Eddie Bauer stores across North America may soon go dark unless a white knight emerges.
Eddie Bauer LLC, a division of Catalyst Brands and operator of the outdoor apparel brand’s approximate 180 stores in the U.S. and Canada under license from brand owner Authentic Brands Group, has filed for Chapter 11 bankruptcy. 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.
The company said that it has entered a restructuring support agreement with its secured lenders through which it will conduct liquidation sales at its stores while continuing to pursue an ongoing sale process. In the event of a sale, Eddie Bauer said it may depart from a full wind down of operations to facilitate a going-concern transaction. If no buyer emerges, the company plans to begin a broader wind-down of its North American retail store operations.
The bankruptcy filing was expected. Earlier this year, going-out-of-business sales had started at some 40 Eddie Bauer locations.
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.
In a statement, Catalyst Brands CEO Mark Rosen said that Eddie Bauer has been in “challenged situation,” with declining sales, supply chain challenges and other issues.
“Over the past year, these challenges have been exacerbated by various headwinds, including increased costs of doing business due to inflation, ongoing tariff uncertainty, and other factors,” added Rosen. “While the leadership team at Catalyst was able to make significant strides in the brand, including rapid improvements in product development and marketing, those changes could not be implemented fast enough to fully address the challenges created over several years.”
Catalyst Brands was formed in January 2025 when JCPenney and SPARC Group (a joint venture of brand management firm Authentic Brands Group, Simon Property Group and Shein) combined to form a new organization. Its portfolio includes JCPenney, Lucky Brand, Aéropostale, Nautica and Brooks Brothers.
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.
Eddie Bauer celebrated its 100th anniversary in 1920.
Kirkland & Ellis LLP, Cole Schotz P.C. and Osler, Hoskin & Harcourt LLP are serving as the Eddie Bauer's proposed legal counsel, BRG is serving as its proposed financial advisor, and Solic Capital Advisors is serving as the proposed investment banker. Reevemark is serving as communications advisor to the retail company.
