Eddie Bauer Stores Likely to Close as Operator Nears Bankruptcy

Outdoor apparel chain Eddie Bauer's nearly 200 stores in the United States and Canada may soon be on the chopping block. An entity of retail holding company Catalyst Brands, which owns the license rights to operate Eddie Bauer stores across North America, is prepping a Chapter 11 bankruptcy filing, sources familiar with the situation told Business Insider. Eddie Bauer's stores in the U.S. and Canada would be at risk of closure in the potential Chapter 11 restructuring. Chapter 11 filing for the Catalyst Brands entity would not affect Eddie Bauer's manufacturing, wholesale, or e-commerce operations, nor its retail business outside the U.S. and Canada.

Total Retail's Take: Between Saks' bankruptcy filing, the planned closure of Amazon Fresh and Amazon Go stores, and Allbirds exiting its full-price brick-and-mortar business, it's not been a banner start to the new year for the retail industry. In the case of Eddie Bauer, the brand has faced more recent challenges in its 106-year history. The company filed for bankruptcy in 2003 and then again in 2009, before being acquired by Authentic Brands Group in partnership with SPARC Group, which later became Catalyst Brands. As for Eddie Bauer's future? It's not as bleak as one may think. There are multiple parties interested in a portion of the existing North American store fleet, sources familiar with the matter told Business Insider.