Outdoor retailer Eddie Bauer LLC, which operates Eddie Bauer stores in the United States and Canada, has filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the District of New Jersey, backed by a Restructuring Support Agreement (RSA) with its secured lenders. The move puts the North American store fleet on a dual track, liquidation sales alongside an expedited search for a buyer, in a bid to preserve some operations while managing an orderly exit if no deal emerges.
Chapter 11 Filing Targets Store Network Only
The Chapter 11 process applies to the retail and outlet store business, not the Eddie Bauer brand’s intellectual property. Under the RSA, the company will run liquidation sales at U.S. and Canadian locations while it simultaneously pursues an expeditious, value maximizing going concern sale of all or part of its store operations.
For now, stores are staying open. The press release confirms that retail and outlet locations in the United States and Canada will remain open and continue serving customers as the Retail Company begins its process of winding down certain stores.
If a buyer emerges, the company notes it may depart from a full wind down of operations to facilitate a going concern transaction, but if no agreement is reached, the plan is an orderly wind down of the Retail Company’s store operations.
The retailer has also filed first day motions asking the court to approve consensual use of cash collateral so it can pay employee wages and benefits in the ordinary course of business and otherwise fund operations through the chapter 11 process. That signals an intent to keep day‑to‑day operations as stable as possible while restructuring moves ahead.
E‑Commerce and Wholesale Already Spun Off
The filing comes after Eddie Bauer’s retail operator restructured its channel mix earlier this year. In January, the retail arm transitioned the Retail Company’s ecommerce and wholesale operations to Outdoor 5 LLC, with those businesses continuing to operate as usual under the new operator.
The Eddie Bauer intellectual property remains owned by Authentic Brands Group, which can license the brand to partners worldwide. Stores outside the United States and Canada are operated by separate licensees, are not part of the Chapter 11 process, and will continue operating in the ordinary course, drawing a clear line between the troubled North American store fleet and the broader global brand footprint.
Catalyst Brands CEO: “Difficult Decision” To File
Marc Rosen, Chief Executive Officer of Catalyst Brands, which holds the license to operate Eddie Bauer stores in North America, framed the filing as a tough but necessary step after other options were exhausted.
“The Retail Company has evaluated all options and taken actions to best position the Retail Company for the future, including transitioning the Retail Company’s e-commerce and wholesale operations to Outdoor 5 LLC.,” Rosen said.
“After careful deliberation, the Retail Company has made the difficult decision to file under chapter 11 to implement a court-supervised sale process and solicit a going concern transaction,” he continued. “If the Retail Company is unable to come to such an arrangement, we will commence an orderly wind down of the Retail Company’s store operations.”
Rosen acknowledged the impact on staff and partners. “This is not an easy decision, and we are grateful to the Retail Company’s associates and customers for their loyalty and trust,” he said. He added that leadership is “working to minimize the impact on the Retail Company’s employees, vendors, customers and other stakeholders” and argued that “this restructuring is the best way to optimize value for the Retail Company’s stakeholders and also ensure Catalyst Brands remains profitable and with strong liquidity and cashflow.”
What This Means For Eddie Bauer Shoppers
For customers, the immediate experience is continuity with a countdown clock in the background: doors remain open, liquidation sales are expected to ramp up, and gift cards and returns are typically honored while the court process unfolds, subject to judge approval. With e‑commerce and wholesale now under Outdoor 5 LLC and the Eddie Bauer name sitting with Authentic Brands Group, the Chapter 11 filing looks less like the end of a 106‑year‑old outdoor label and more like a reset for its North American stores under intense financial pressure.
Whether a buyer steps in to keep some stores alive or the fleet ultimately winds down, this restructuring will reshape how Eddie Bauer shows up in U.S. and Canadian retail, shifting the balance from traditional mall outposts toward licensed, digital, and wholesale channels.
