Shoppers will likely soon have to say goodbye to Eddie Bauer’s retail stores across the US and Canada.
Nearly 200 North American storefronts of the iconic outdoor apparel chain are expected to shut down after the operating entity behind the stores failed to find a buyer during its Chapter 11 restructuring.
Liquidation sales have been underway at the US and Canadian stores, Eddie Bauer LLC — an entity of retail holding company Catalyst Brands that licenses the rights to operate Eddie Bauer stores across North America — has said in court documents.
Those store-closing sales are projected to wrap up before April 30, according to recent court filings in the company’s bankruptcy case.
The Eddie Bauer storefronts span 40 US states and six Canadian provinces, and employ roughly 2,200 people, the court documents say.
A planned March 6 auction for all or part of the North American store operating business was canceled after the company failed to receive any qualified bids, according to court papers filed earlier this month.
“The debtors will continue store-closing sales at all of their brick-and-mortar locations unless and until a more value-maximizing transaction becomes available,” the company said in a filing.
Meanwhile, retail real-estate advisory firm RCS Real Estate Advisors said earlier this month that it was actively marketing about 174 Eddie Bauer store leases totaling more than 1 million square feet.
The stores average roughly 6,300 square feet and are located in states including California, New York, New Jersey, and Washington.
“This portfolio represents a rare opportunity to secure legacy retail locations in established centers nationwide,” Ivan Friedman, the president and CEO of RCS Real Estate Advisors, said in a statement.
The operating entity behind the stores filed for Chapter 11 in federal bankruptcy court in New Jersey last month amid mounting debt and falling sales.
The bankruptcy 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.
Founded more than a century ago, the Eddie Bauer brand built its reputation on durable outdoor gear and clothing designed to withstand extreme conditions.
Eddie Bauer LLC declined to comment beyond its court filings.
Read the full article here
