Kathrine Frich
They have shaped outdoor fashion for more than a century.
Concerns are growing over the fate of hundreds of stores across North America.
The latest developments have put staff and customers on alert.
Bankruptcy preparations
Outdoor apparel retailer Eddie Bauer is preparing for a potential Chapter 11 bankruptcy filing in the United States, according to reports cited by Business Insider.
An entity linked to Catalyst Brands, the retail group that operates Eddie Bauer’s North American stores, is expected to seek court protection that would allow it to restructure its finances rather than immediately shut down operations.
If the filing goes ahead, it could open the door to the sale of some or all of the company’s roughly 180 stores in the United States and Canada.
What Chapter 11 means
Chapter 11 bankruptcy is a reorganization process under U.S. law that allows companies to continue operating while they work out a plan to repay creditors.
Businesses filing under Chapter 11 usually remain in control of their assets as so-called “debtors in possession,” while negotiating with lenders and potential buyers under court supervision.
Sources cited by Business Insider said a filing would not affect Eddie Bauer’s manufacturing, wholesale or e-commerce operations, nor its retail business outside North America, including stores in Japan.
Brand and ownership
Founded in Seattle in 1920 by outdoorsman Eddie Bauer, the brand became famous for developing the quilted goose-down jacket known as the “Skyliner.”
Today, Eddie Bauer sells a broad range of outdoor clothing, travel gear and luggage.
The brand is owned globally by Authentic Brands Group, which licenses its operations to regional partners.
Interested buyers could bid for parts of the North American store network, while continuing to license the Eddie Bauer name from Authentic Brands Group.
Wider retail pressures
Catalyst Brands, which also operates labels such as JCPenney, Nautica and Brooks Brothers, did not immediately respond to requests for comment.
Eddie Bauer has sought bankruptcy protection before, filing in 2003 and 2009 amid earlier retail downturns.
In 2021, Authentic Brands Group acquired the label alongside SPARC Group, which later evolved into Catalyst Brands.
The possible filing comes as traditional retailers across North America struggle with high costs, changing consumer habits and intense online competition.
Sources: Business Insider, Express.
