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The operating entity behind Eddie Bauer's North American stores has officially filed for bankruptcy.
Eddie Bauer LLC, an entity of retail holding company Catalyst Brands, which licenses the rights to operate Eddie Bauer stores across the United States and Canada, filed for Chapter 11 in federal bankruptcy court in New Jersey on Monday.
The move puts the iconic American outdoor apparel chain's nearly 200 stores throughout the US and Canada at risk of closure.
Under the Chapter 11 restructuring plan, the company said it will conduct liquidation sales at Eddie Bauer stores "while continuing to pursue an ongoing sale process" of all or part of the store operating business in North America.
A potential sale could keep the North American business operations up and running instead of a complete wind-down, the company said.
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If no buyer emerges, the retailer is expected to close down its stores across North America.
In the meantime, Eddie Bauer retail and outlet stores in the US and Canada will remain open as the company begins shutting down certain stores, the company said.
The retailer has been "in a challenged situation, with declining sales, supply chain challenges and other issues" since before the creation of Catalyst Brands last year, Marc Rosen, the CEO of Catalyst Brands, said in a statement.
"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," he said.
The bankruptcy filing said that Eddie Bauer LLC has more than 100,000 creditors. The company listed its estimated assets at $100 million to $500 million and its estimated liabilities at $1 billion to $10 billion.
The Chapter 11 filing does not affect Eddie Bauer's manufacturing, wholesale, or e-commerce operations, nor its retail business outside the US and Canada. Japan is home to several Eddie Bauer stores.
Last month, Authentic Brands Group, which owns the Eddie Bauer brand and IP worldwide, announced that it was transitioning the licenses for Eddie Bauer's manufacturing, e-commerce, and wholesale operations in North America from Catalyst to Outdoor 5.
The Eddie Bauer brand, one of the oldest in American outdoor apparel, has built its reputation on durable, innovative gear and clothing designed to withstand extreme conditions.
It was founded in Seattle in 1920 by outdoorsman Eddie Bauer, who two decades later patented the first quilted goose-down jacket in the country after a near-fatal experience with hypothermia.
The brand has dealt with Chapter 11 bankruptcy proceedings twice before, first in 2003 when its then-parent company, Spiegel, filed for bankruptcy. Eddie Bauer emerged from that bankruptcy two years later as a stand-alone company.
Facing mounting debt, the retailer filed for Chapter 11 in 2009 and was acquired by private equity firm Golden Gate Capital later that year through a bankruptcy auction.
In 2021, Eddie Bauer was acquired by Authentic Brands Group, in partnership with SPARC Group (which has since become Catalyst Brands).