Golden Gate Completes Eddie Bauer Sale
Claire Spencer, August 2009
(06 August 2009)
San Francisco-based private equity firm Golden Gate Capital has acquired the bankrupt clothing retailer Eddie Bauer for $286m in cash, according to a report in the Puget Sound Business Journal. The sale was approved late last month by the US Bankruptcy Court in Delaware.
Under the terms of the deal, Golden Gate has agreed to keep at least 300 of Eddie Bauer’s 370 stores open.
“With key new product launches slated for fall and holiday, a healthy balance sheet and a lower cost structure, we will be well positioned to grow Eddie Bauer,” said CEO Neil Fiske, in a statement.
Stefan Kaluzny, managing director of Golden Gate Capital, added that “we are very pleased to acquire the Eddie Bauer operations and to partner with the existing management team in continuing to restore and rebuild this iconic brand.” It already owns a number of other US-based retail brands, including Express, J. Jill and Orchard Brands.
According to the report, Eddie Bauer filed for Chapter 11 bankruptcy protection on 17 June, citing its overwhelming $300m debt burden.