Eddie Bauer Seeks Buyer to Prevent North American Store Closures
The future of Eddie Bauer hangs in the balance as the company seeks a buyer to prevent North American store closures. The apparel retailer, which recently filed for bankruptcy protection in the United States, aims to sell its 220 stores across Canada and the U.S.
Eddie Bauer’s Bankruptcy and Store Closures
Eddie Bauer LLC announced on Monday that it is looking for a buyer amid financial struggles. This follows a bankruptcy filing in the U.S., with a similar move expected in Canada. Currently, the retailer lists 31 stores in Canada, primarily in Ontario.
The company has stated that all locations will remain open for the time being. However, they will conduct liquidation sales as part of the court processes while searching for a potential buyer.
Potential Outcomes if a Buyer Isn’t Found
If Eddie Bauer cannot find a buyer, its owner, Catalyst Brands, will initiate a wind-down of operations in both Canada and the U.S.
- Founded in 1920 by Eddie Bauer.
- Company has a history of bankruptcy, having filed for protection twice before.
- Was acquired in May 2021 by SPARC Group as part of a merger with JCPenney.
Challenges Facing Eddie Bauer
Marc Rosen, CEO of Catalyst Brands, mentioned that Eddie Bauer has faced numerous challenges, including:
- Declining sales.
- Supply chain difficulties.
- Inflation and tariff uncertainties.
The company has implemented some improvements in product development and marketing. However, these changes have not been sufficient to counteract years of challenges.
Retail Landscape and Brand Perception
Neil Saunders, a retail analyst at GlobalData, highlighted the brand’s struggles in attracting younger consumers. He noted that Eddie Bauer is viewed as old-fashioned compared to emerging brands like Patagonia and The North Face. Issues with product quality have also hindered sales.
In Canada, Eddie Bauer operates a limited number of stores. Aside from its 15 locations in Ontario, it has six each in Alberta and British Columbia, with one in Manitoba, New Brunswick, Nova Scotia, and Saskatchewan.
Current Sales and Liquidation Efforts
Recent reports indicate that many Eddie Bauer stores have begun clearing out inventory with discounts reaching up to 60%. U.S. court documents reveal that the upcoming legal proceedings in Canada will protect the company’s assets and ensure enforceability of any sale agreement across the border.
Stores outside North America are managed by other licensees and remain unaffected by these bankruptcy filings. Moreover, the company’s e-commerce and wholesale operations will continue, as they are managed by the Authentic Brands Group’s subsidiary, Outdoor 5, which retains licensing rights to the Eddie Bauer name.
