BY Richard Summerfield
Eddie Bauer LLC, operator of Eddie Bauer stores in the US and Canada and a licensee of the Eddie Bauer brand, filed for Chapter 11 bankruptcy protection on Monday, 9 February 2026, in the US Bankruptcy Court for the District of New Jersey. The company cited declining sales and supply chain challenges and outlined a court‑supervised process to solicit bids for approximately 175 to 180 stores while maintaining operations during the case.
The company has filed customary motions seeking ‘first day’ relief, including approval to use cash collateral to pay wages and benefits in the ordinary course and to fund operations through Chapter 11. The filing is the third insolvency for the Eddie Bauer business in just over two decades, following a 2003 case tied to Spiegel Inc and a 2009 restructuring that culminated in a sale to Golden Gate Capital. In 2021, the operating company was sold to SPARC Group Holdings and the brand’s intellectual property to an affiliate of Authentic Brands Group.
In January 2025, SPARC Group and JCPenney combined to form Catalyst Brands, which licensed North American brick‑and‑mortar retail rights to Eddie Bauer from Authentic. According to the filing, Eddie Bauer retail locations outside the US and Canada are operated by other licensees, are not included in the Chapter 11 proceedings, and will continue to trade in the ordinary course. Court papers indicate total funded debt of about $1.7bn.
The company said its financial headwinds were exacerbated by tariff uncertainty and inflation, alongside weaker demand for outdoor apparel since the pandemic surge. Throughout the Chapter 11 process, most retail and outlet stores will remain open. The company has commenced store‑closing sales at many locations while running a sale process. If a buyer for part or all of the retail footprint does not emerge, the US and Canadian stores operated by the LLC could close. The company is currently unable to provide a timetable for individual closures. The operations of other brands in the Catalyst Brands portfolio are not affected and continue in the normal course, according to a statement announcing the filing.
“Even prior to the inception of Catalyst Brands last year, the Retail Company was in a challenged situation, with declining sales, supply chain challenges and other issues,” said Marc Rosen, chief executive 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. While the leadership team at Catalyst was able to make significant strides in the brand, including rapid improvements in product development and marketing, those changes could not be implemented fast enough to fully address the challenges created over several years.”
Mr Rosen explained that the Retail Company had explored all available options and taken steps to strengthen its future prospects, including transferring its e‑commerce and wholesale operations to Outdoor 5 LLC. After extensive consideration, the company decided to file for Chapter 11 in order to carry out a court‑supervised sale process and seek a buyer willing to keep the business operating. He noted that if such an agreement cannot be reached, the company will proceed with an orderly wind‑down of its store operations.
Mr Rosen also acknowledged that the decision was difficult and expressed appreciation for the loyalty and trust shown by the Retail Company’s employees and customers. He said the organisation is working to limit the impact on staff, vendors, customers and other stakeholders. He added that, despite the challenges, the restructuring represents the most effective path to protect stakeholder value while ensuring that Catalyst Brands remains profitable with strong liquidity and cash flow.
Eddie Bauer LLC operates about 175 stores across 40 states and Canada and employs roughly 2200 people. The company benefitted from renewed interest in the outdoors during the pandemic and posted positive earnings before interest, taxes, depreciation and amortisation of $21m during the last eight months of 2021; however, its resurgence did not last. The company lost $2m in 2022, $10m in 2023, $82m in 2024 and $80m in 2025.
News: Eddie Bauer store operator files for bankruptcy, seeks sale