Store operator of Eddie Bauer files for Chapter 11 bankruptcy

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

Klöckner Pentaplast emerges from Chapter 11

BY Fraser Tennant

With the support of new ownership and a significantly strengthened financial foundation, plastic packaging products manufacturer Klöckner Pentaplast (kp) has successfully completed its restructuring and emerged from Chapter 11 bankruptcy. 

The company’s exit from Chapter 11 – a process commenced after the company entered a restructuring support agreement with most of its financial stakeholders in November 2025 – follows an injection of €349m in new capital as part of its plans to stabilise ongoing operations.

With the financial restructuring process concluded, kp emerges having eliminated approximately €1.3bn of funded debt. Thus, with a significantly strengthened balance sheet and enhanced financial flexibility, kp enters its next phase with confidence and is well prepared to drive results.

“We emerge from the Chapter 11 process as a financially stronger company,” said Roberto Villaquiran, chief executive of kp. “I am energised by the opportunities ahead, and I am highly confident that our talented teams will continue to build on our leading product portfolio and global presence.”

In connection with its emergence, kp has executed a transition of ownership of the company to a group of its financial partners led by funds affiliated with Redwood Capital Management, LLC. The new ownership structure has seen Mr Villaquiran and Michael Kaufman, a partner at Redwood Capital Management, appointed to kp’s board of directors, while industry leader Andrew Berlin is expected to be appointed to the board as chairman in the near term.

“We are grateful for the support of our new owners, who continue to demonstrate their confidence in our business and future prospects as we deliver innovative and sustainable packaging and film solutions to customers globally,” added Mr Villaquiran.

Founded in 1965, kp has 27 plants in 16 countries and employs over 5000 people committed to serving customers worldwide in over 60 locations. Having celebrated its 60th anniversary in 2025, the company remains focused on meeting and exceeding customer expectations with agility and excellence, while helping support the transition to a more circular economy.

I am proud of our dedicated employees for their relentless commitment to providing excellent service for our customers,” concluded Mr Villaquiran. “We also appreciate our global customers, vendors, suppliers and business partners for their tremendous support, and look forward to working together as we embrace a new chapter of partnership and value creation.”

News: Klöckner Pentaplast cuts €1.3bn in debt through Chapter 11 restructuring

Solar firm Pine Gate Renewables files for Chapter 11

BY Fraser Tennant

To facilitate a sales process and maximise value for its stakeholders, US solar developer Pine Gate Renewables and certain of its subsidiaries has filed for Chapter 11 bankruptcy.

One of the leading solar development firms in the US with more than 30 gigawatts of solar power in development, Pine Gate Renewables employs over 300 people and has developed over 100 new solar facilities since its founding in 2016.

The North Carolina-based company is the largest renewables developer to collapse in the aftermath of US President Donald Trump’s cuts to solar and wind tax credits. As a result, the company is pursuing a strategic and value-maximising sales process for substantially all of its assets and business operations.

ACT Power Services, Pine Gate’s wholly-owned operations and maintenance provider, is not part of the Chapter 11 process. Pine Gate is, however, in active discussions with multiple interested parties to identify a value-maximising sale transaction for the ACT business.

During the court-supervised sales process, Pine Gate and ACT Power Services will continue to support their project partners and advance projects currently in development and under construction. Pine Gate’s operational projects will also continue to generate and sell power.

“Since our founding, Pine Gate has grown tremendously, deploying innovative solar and energy storage projects at scale that enable us to deliver renewable, reliable and affordable energy,” said Ben Catt, chief executive of Pine Gate. “To ensure that our projects continue generating renewable energy, we made the strategic decision to commence a court-supervised sales process.”

To support the company through the bankruptcy process, Pine Gate has secured financing commitments from certain of its current lenders that will be used to support operations, including the advancement of projects in development and under construction.

“With significant financial support from certain of our current lenders, we are confident that we will successfully conduct a competitive sales process that reflects the inherent value of our nationwide portfolio of solar and energy storage projects,” added Mr Catt.

Pine Gate expects to complete the sales process, which will provide interested parties the opportunity to submit competing bids for the company and its assets, in approximately 45 days.

Mr Catt concluded: “As we move through the Chapter 11 process, we remain committed to supporting our valued project partners across our more than 100 operational solar facilities and forging ahead with our projects in development and under construction.”

News: Solar power producer Pine Gate blames Trump’s cuts in bankruptcy

A new era: Wolfspeed emerges from Chapter 11

BY Fraser Tennant

Three months after filing, chipmaker Wolfspeed has emerged from Chapter 11 bankruptcy protection following the successful completion of its financial restructuring process.

As a result of the restructuring, Wolfspeed has reduced its total debt by approximately 70 percent, with maturities extended to 2030, and lowered its annual cash interest expense by around 60 percent.

In addition, the company maintains ample liquidity to continue supplying customers with leading silicon carbide solutions. With a self-funded business plan supported by free cash flow generation, Wolfspeed is well positioned to leverage its vertically-integrated 200mm manufacturing footprint – underpinned by a secure and scalable US-based supply chain – to drive sustainable growth.

The company filed for Chapter 11 in June, citing production delays at its New York State factory, increased Chinese chip competition and flagging electric vehicle (EV) demand, as well as mounting debt obligations.

“Wolfspeed has emerged from its expedited restructuring process, marking the beginning of a new era,” said Robert Feurle, chief executive of Wolfspeed. “As we enter this new era, we do so with much improved financial stability, a scaled, greenfield and vertically integrated 200mm facility footprint, and our large capital deployment behind us.”

Founded in 1987 under the name Cree, Wolfspeed manufactures a unique semiconductor material – silicon carbide – used in EVs, fast-charging stations and renewable energy storage units. The company also has a lineup of power devices.

“We firmly believe that we are well positioned to capture rising demand in end markets, such as artificial intelligence, EVs, industrial and energy, that are rapidly growing and recognising silicon carbide’s potential,” continued Mr Feurle. “We remain committed to our mission to deliver cutting-edge solutions to our customers to ensure Wolfspeed remains at the forefront of the industry.”

In connection with its emergence from Chapter 11, Wolfspeed has appointed five new directors to join its board, each bringing extensive semiconductor and industry knowledge, and deep accounting and finance expertise.

“I am deeply grateful to our valued employees, who are the key drivers of our success, as well as to our customers, vendors and lenders for their unwavering support and confidence throughout this process,” concluded Mr Feurle. “I look forward to unleashing the full potential of the platform that we have built with a much stronger financial foundation to support us.”

News: Wolfspeed exits Chapter 11 bankruptcy, slashes debt and interest costs

Second time around: Spirit Airlines files for Chapter 11

BY Fraser Tennant

For the second time in a year, no-frills pioneer Spirit Airlines has filed for Chapter 11 bankruptcy protection in order to facilitate a comprehensive restructuring and position the business for long-term success.

The airline intends to use the Chapter 11 process to implement the broad changes necessary to transition the company for a sustainable future and position it to deliver the best value.  

The Chapter 11 process will provide Spirit with the tools, time and flexibility to continue ongoing discussions with all of its lessors, financial creditors and other parties to implement a financial and operational transformation of the company.

Through the restructuring process, Spirit intends to: (i) focus its flying on key markets to provide more destinations, frequencies and enhanced connectivity in its focus cities; (ii) optimise its fleet to match capacity with profitable demand in line with the redesigned network; and (iii) reinforce efforts to build on its industry-leading cost model by pursuing further efficiencies across the business.

“Since emerging from our previous restructuring, it has become clear that there is much more work to be done and many more tools are available to best position Spirit for the future,” said Dave Davis, president and chief executive of Spirit Airlines. “After thoroughly evaluating our options and considering recent events and the market pressures facing our industry, our board of directors decided that a court-supervised process is the best path forward.”

Spirit expects to be delisted from the NYSE American stock exchange as a result of the Chapter 11 filing and for its common stock to continue to trade in the over the counter marketplace through the bankruptcy process.

“As we move forward, customers can continue to rely on Spirit to provide high-value travel options and connect them with the people and places that matter most,” continued Mr Davis. “On behalf of our board and leadership, I want to thank our team members for their continued dedication, resilience and commitment to delivering a safe, reliable operation and excellent service.”

Florida-based Spirit Airlines serves destinations throughout the US, Latin America and the Caribbean with its all-Airbus Fit Fleet, one of the youngest and most fuel-efficient fleets in the US.

Mr Davis concluded: “We have evaluated every corner of our business and are proceeding with a comprehensive approach in order to best serve our customers, team members and other stakeholders.”

News: Spirit Airlines files for second bankruptcy in a year as financial challenges persist