Eddie Bauer to Sell 220 Stores in Canada, U.S. Post-Bankruptcy

The iconic outdoor apparel retailer Eddie Bauer is facing a turbulent future marked by its decision to sell 220 stores across Canada and the U.S. The announcement came after the company filed for bankruptcy protection in the United States. A similar filing in Canada is also on the horizon.

Eddie Bauer’s Potential Store Closures Following Bankruptcy

Eddie Bauer currently has 31 locations in Canada, predominantly situated in Ontario. The brand confirmed that despite the bankruptcy filings, all locations will remain operational, albeit hosting liquidation sales as the court proceedings unfold.

Ownership and Financial Struggles

• Eddie Bauer is owned by Catalyst Brands, which formed from a merger of JCPenney and SPARC Group.
• The company has faced significant challenges, including declining sales and supply chain issues.
• CEO Marc Rosen noted that increased inflation and tariff uncertainties have exacerbated these difficulties.

Since its founding in 1920 by Seattle native Eddie Bauer, the retailer has had a storied history. Initially gaining popularity for outfitting the U.S. military and for its role in notable mountain climbing achievements, Eddie Bauer has seen its appeal wane in recent years. The brand has filed for creditor protection multiple times but struggled to compete with rising outdoor brands like Patagonia and The North Face.

Market Analysis and Brand Perception

Neil Saunders, a retail analyst at GlobalData, commented on Eddie Bauer’s premium appeal. He remarked that the brand appears outdated to younger consumers and has experienced issues with product quality. This perception can severely impact sales and profitability.

Efforts to revitalize certain locations have not produced the desired results. Many stores have been criticized for lacking effective customer engagement strategies, such as education and storytelling related to outdoor products.

The Current Canadian Footprint

In Canada, Eddie Bauer’s presence includes:

• 15 stores in Ontario
• 6 stores in Alberta
• 6 stores in British Columbia
• 1 store each in Manitoba, New Brunswick, Nova Scotia, and Saskatchewan

Last week, some stores began marking down inventories by as much as 60%. The company intends to file legal documents in Canada to protect its assets and ensure any sale agreements are enforceable across the border.

Future Prospects

It remains uncertain what the future holds for Eddie Bauer. Stores outside North America are operated by licensed entities and are not part of the bankruptcy proceedings. Additionally, the company’s e-commerce and wholesale divisions, owned by Authentic Brands Group, are unaffected and will continue to operate as usual.

As Eddie Bauer navigates these challenges, the ability to find a buyer will be crucial. Without it, Catalyst Brands may have to wind down operations in both Canada and the United States.