Eddie Bauer files for Chapter 11 bankruptcy protection during the financial crisis
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Eddie Bauer LLC, which operates chain stores in the US and Canada, filed for Chapter 11 bankruptcy protection in New Jersey on Monday.
The operator cited declining sales and procurement challenges, and more recently, continued inflation, cost uncertainty and other headwinds as reasons for the application.
It will initially be sold at its 180 Eddie Bauer stores in the US and Canada, and will be looking for a buyer to operate its brick-and-mortar store.
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Eddie Bauer LLC, which operates retail stores in the US and Canada. (Getty Images)
Founded in Seattle, this brand has sold outdoor sportswear for 106 years. It commissioned the first down jacket, known as the “Skyliner” in 1940.
Eddie Bauer LLC is a subsidiary of Catalyst Brands, which emerged as a new retail holding company in 2025 through the merger between JCPenney and SPARC Group.
“This is not an easy decision,” said Marc Rosen, CEO of Catalyst Brands, which owns the license to operate Eddie Bauer stores throughout the US and Canada. “However, this restructuring is the best way to increase the Retail Company’s shareholder value and ensure that Catalyst Brands remains profitable and has strong capital and cash flow.”
Eddie Bauer’s bankrupt company has $1.7 billion in debt, according to its court filings.
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Eddie Bauer stores outside the US and Canada are operated by other licensees and have not filed for Chapter 11, according to a press release. Places will remain open.
Eddie Bauer’s store appears on Feb. 3, 2026, in Round Rock, Texas. (Brandon Bell/Getty Images)
No other brand under Catalyst will be affected by the filing. The bankruptcy will not affect Eddie Bauer’s manufacturing, e-commerce operations or retail operations outside the US and Canada.
Authentic Brands Group owns the Eddie Bauer brand and IP worldwide.
“We have a clear distribution strategy focused on strengthening digital channels and supermarkets while maintaining physical store presence through strategic partners,” said Authentic Brands Vice President David Brooks. “This approach gives the brand greater flexibility, broader consumer reach and a more cost-effective path to growth. By aligning Eddie Bauer’s channel mix with how customers choose to shop today, we are positioning the brand for long-term, sustainable growth while protecting the brand’s integrity.”
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The bankruptcy will not affect Eddie Bauer’s manufacturing, e-commerce operations or retail operations outside the US and Canada. (Brandon Bell/Getty Images)
The company’s creditors have agreed to support the liquidation plan, with the option to convert to a sale of the company if a buyer can be found soon after bankruptcy. Eddie Bauer stores and retail stores will remain open during the bankruptcy sale.
Eddie Bauer intends to get court approval on the potential sale by March 12, according to court documents. Eddie Bauer previously filed for bankruptcy in 2009.
Similar challenges have also driven several other retailers out of business in recent months, including high-end department store Saks Global, fast-fashion company Forever 21 and womenswear and accessories retailer Francesca.
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Reuters contributed to this report.
