Eddie Bauer retailer files for bankruptcy amid declining sales

Eddie Bauer LLC filed for Chapter 11 bankruptcy protection amid declining sales.The filing in the U.S. Bankruptcy Court for the District of New Jersey on Monday is the third time Eddie Bauer has filed for bankruptcy in just over 20 years, The Associated Press reported.
The company said on Monday that it had entered into a restructuring pact with its secured lenders.
Certain Eddie Bauer stores in the U.S. and Canada will be shut down, but most will remain open. The company said it will conduct a court-supervised sales process, and if a sale cannot be executed, then it will start to wind down its U.S. and Canadian operations.
“This is not an easy decision,” CEO of Catalyst Brands Marc Rosen said, the company that maintains the license to operate Eddie Bauer stores in the U.S. and Canada. “However, this restructuring is the best way to optimize value for the retail company’s stakeholders and also ensure Catalyst Brands remains profitable and with strong liquidity and cash flow.”
Since Eddie Bauer stores outside the U.S. and Canada are operated by other licensees, they are not included in the Chapter 11 filings, and will remain open.
Also, Eddie Bauer’s e-commerce and wholesale operations will not be impacted by the bankruptcy filing, as they are operated by a company called Outdoor 5, LLC.

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