Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Eddie Bauer files for bankruptcy

Retailer cites debt concerns stemming from previous reorganization.

EMAIL  |   PRINT  |   SHARE  |   RSS
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Julianne Pepitone, CNNMoney.com contributing writer

Click the chart to view the latest stock prices.

NEW YORK (CNNMoney.com) -- Eddie Bauer Holdings Inc. filed for Chapter 11 bankruptcy protection Wednesday, citing an inability to pay back debt.

Eddie Bauer (EBHI) emerged from Chapter 11 bankruptcy in 2005 after being spun off from former owner Spiegel Catalog, which itself sought bankruptcy protection in 2003.

Costs from the 2005 reorganization, combined with pressure from the current recession, left the company "with no choice but to use this process to reduce the debt load," said chief executive Neil Fiske in a prepared statement.

"Eddie Bauer is a good company with a great brand and a bad balance sheet," he added.

The outdoor clothing retailer plans to sell most of its assets to private-equity firm CCMP Capital Advisors for $202 million. It expects the sale will be complete in 60 days or less.

CCMP has agreed to keep most of the stores and employees, though the sale is open to other bidders per bankruptcy law. Eddie Bauer has 371 stores nationwide, with 8,600 employees.

Eddie Bauer said it secured financing from Bank of America (BAC, Fortune 500) and CIT Group/Business Credit (CIT, Fortune 500) for a total $100 million based on final court order.

In April the company negotiated with lenders for short-term relief on its debts before "explor[ing] various paths for restructuring its balance sheet," the release said, but it was ultimately unable to do so.

Eddie Bauer is only one of several retailers to file for bankruptcy during the recession. Circuit City, KB Toys, Sharper Image, Fortunoff, Filene's Basement, Steve & Barry's and Linens 'n Things have all filed for Chapter 11, crunched by low consumer spending power. To top of page

They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
Black Friday 2015 in pictures Shoppers around the country braved the crowds to get their hands on the best Black Friday deals. More
Driving the ultimate in '50s Mercedes-Benz style The SC was the car that re-introduced Mercedes-Benz as a global luxury car icon. More
Driving the world's first car Driving a replica of the 1886 Benz Patent Motorwagen, the first internal combustion automobile. More
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play