Outdoor sportswear pioneer Eddie Bauer again files for bankruptcy

Eddie Bauer Files for Bankruptcy Protection for Third Time in Two Decades

The operator of approximately 180 Eddie Bauer stores across the United States and Canada filed for Chapter 11 bankruptcy protection on Monday, marking the third bankruptcy filing for the storied outdoor brand in just over 20 years.

Eddie Bauer LLC cited declining sales and numerous industry challenges as reasons for the filing in the U.S. Bankruptcy Court for the District of New Jersey. The company has entered into a restructuring agreement with its secured lenders as it seeks to stabilize operations.

Most Eddie Bauer retail and outlet locations across North America will remain open during the restructuring process, though the company plans to wind down certain underperforming stores. The bankruptcy filing includes provisions for a court-supervised sales process, with the company warning that if a buyer cannot be found, it will begin shutting down its U.S. and Canadian operations entirely.

“This is not an easy decision,” said Marc Rosen, CEO of Catalyst Brands, which holds the license to operate Eddie Bauer stores in North America. “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.”

Eddie Bauer locations outside North America are operated by separate licensees and are not affected by the bankruptcy filing. Additionally, the company’s e-commerce and wholesale operations will continue uninterrupted, as they are managed by Outdoor 5, LLC, following a transition completed in February of this year.

Authentic Brands Group, which owns Eddie Bauer’s intellectual property, retains the right to license the brand to other operators regardless of the outcome of the bankruptcy proceedings.

The outdoor retailer joins a growing list of U.S. retailers restructuring or closing stores in 2024. The parent company of Saks Fifth Avenue filed for bankruptcy protection last month, struggling with heavy debt after acquiring luxury competitor Neiman Marcus. Shortly thereafter, the company announced the closure of most Saks Off 5th outlet locations. Even tech giant Amazon has retreated from physical retail, recently shuttering nearly all of its Amazon Go and Amazon Fresh locations to focus on food delivery and its Whole Foods Market chain.

Eddie Bauer’s history traces back to 1920, when its namesake founder, an avid outdoorsman, established Bauer’s Sports Shop in Seattle. The company quickly built a reputation for quality outdoor gear and apparel. During World War I, the company manufactured thousands of down jackets and sleeping bags for the U.S. military, and in 1945, launched its first mail-order catalog.

The brand achieved iconic status in the outdoor industry in 1936 with the creation of the “Skyliner,” a patented goose-down insulated jacket. Eddie Bauer further cemented its legacy in 1963 by outfitting James W. Whittaker, the first American to summit Mount Everest, with a specialized parka.

After Bauer’s retirement in 1968, the company changed hands multiple times. General Mills acquired it in 1971, followed by Spiegel Inc. in 1988. The brand’s first bankruptcy came in 2003 when Spiegel filed for protection, leading to a reorganization as Eddie Bauer Holdings Inc. in 2005. Four years later, in June 2009, Eddie Bauer filed for bankruptcy again and was acquired by Golden State Capital. Authentic Brands and SPARC Group LLC purchased the company in 2021.

Last year, SPARC merged with JCPenney to form Catalyst Brands, with both retailers owned by mall operators Simon Property Group and Brookfield.

Rosen acknowledged that Eddie Bauer faced significant challenges even before becoming part of Catalyst Brands. “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 explained. Despite efforts to improve product development and marketing, these changes “could not be implemented fast enough to fully address the problems created over several years.”

Industry analysts point to deeper issues beyond economic headwinds. Neil Saunders, managing director of GlobalData Retail, noted earlier this month that while the Eddie Bauer name remains well-known, the brand has failed to keep pace with competitors like Fjallraven and Arc’teryx. He cited quality deterioration as particularly problematic for an outdoor brand where performance is paramount.

“For many younger shoppers, the brand is seen as somewhat old-fashioned and a bit irrelevant,” Saunders observed.

At its peak in 2001, Eddie Bauer operated nearly 600 stores according to commercial real estate data firm CoStar Group Inc., more than three times its current footprint.