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 and outlined plans to sell about 200 of its namesake outdoor sportswear stores in the US and Canada, citing declining sales and supply chain challenges.
The company filed for bankruptcy protection in the US Bankruptcy Court for the District of New Jersey and has filed customary motions with the court seeking a variety of ‘first day’ relief, including approval of the consensual use of cash collateral to pay employee wages and benefits in the ordinary course of business and otherwise fund operations through the Chapter 11 process.
The filing marks the third bankruptcy for the Eddie Bauer business, whose operating company was sold to SPARC Group Holdings and its intellectual property to an affiliate of Authentic Brands Group in 2021. In January 2025, SPARC was acquired by Catalyst Brands, which licensed the North American brick-and-mortar retail rights from Authentic.
According to the filing, the company’s retail store locations outside of the US and Canada are operated by other licensees, are not included in the Chapter 11 filings and will continue operating in the ordinary course. The bankrupt Eddie Bauer retail company has $1.7bn in debt, according to its court filings.
The company said its financial headwinds were exacerbated by the Trump administration’s uncertain tariff policies and inflation, among other factors.
Throughout the bankruptcy process, most of its retail locations will remain open while the company looks for a buyer. But if that process fails, Eddie Bauer shops in the US and Canada operated by the LLC could close, the company noted. The company is currently unable to say when individual stores may close. The operations of other brands in the Catalyst Brands portfolio are not affected by this filing and will 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 175 stores across 40 states and Canada and employs about 2200 people. The company had benefitted from a 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 20211, however its resurgence did not last long. 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