Eddie Bauer LLC, the operator of roughly 180 retail and outlet stores in the United States and Canada, has filed for Chapter 11 bankruptcy protection in the US and said it will initiate similar court proceedings in Canada to protect its assets and ensure any potential sale is recognized in both jurisdictions.
The filing, made in the US Bankruptcy Court for the District of New Jersey, follows a restructuring agreement with secured lenders.
In court documents, the company cited declining sales, inflation-driven costs, supply chain disruptions, and uncertainty around tariffs as key pressures on its business.
Eddie Bauer listed assets between $100 million and $500 million and liabilities between $1 billion and $10 billion, with more than 100,000 creditors.
Most Eddie Bauer stores in the US and Canada are expected to remain open during the restructuring process, though some locations have begun discounting inventory as leases expire, the company said. It operates 31 stores in Canada, about half of which are in Ontario, according to its website.
Eddie Bauer plans to pursue a court-supervised sales process and said it would begin winding down its North American operations if no buyer is found.
“This is not an easy decision,” said Marc Rosen, CEO of Catalyst Brands, which licenses and operates Eddie Bauer stores in the US 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.”
The bankruptcy filing applies only to Eddie Bauer LLC, which runs the brand’s physical stores in the US and Canada. The brand’s e-commerce and wholesale operations are operated separately by Outdoor 5, LLC and are not affected, nor are international stores run by other licensees.
Authentic Brands Group, which owns the Eddie Bauer intellectual property, said it may continue licensing the brand to other operators.