Eddie Bauer goes belly up
Filed under: Shopping, Bankruptcy
Eddie Bauer made its mark selling rugged apparel and outdoor gear, but it's having a hard time surviving this economic climate. Shortly after filing for Chapter 11 Bankruptcy protection on Wednesday, Eddie Bauer Holdings Inc. got a visit from a knight in shining armor: Private equity.
CCMP Capital Advisors LLC has bid $202 million in cash for Eddie Bauer's assets, including 371 retail stores, most of which CCMP says will remain open if the deal goes through. Other buyers can also bid on the company while in Chapter 11.
Eddie Bauer has been saddled with debt and slammed by the recession, but is it even still relevant?
I have fond memories of perusing the Eddie Bauer catalog as a kid, coveting boots and flannel lined jeans for the harsh winters of the Midwest. Dreaming of new tents and camping gear to make summer tours of national parks more comfortable. But Eddie Bauer strayed from these outdoorsy roots some time ago, and started carrying home goods, furniture and "fashion" apparel. There's even an Eddie Bauer Ford SUV. Just about everything seems out of touch with today's market. So it's hardly a surprise that total sales dropped approximately 18% for the first quarter of this year. According to the court filing, the company has nearly $427 million in debt and just $476 million in assets.
I'm not the only one feeling nostalgic about the Eddie Bauer of old. The same is true of LL Bean and Lands End. Iconic retail brands don't always survive changes, but I'm keeping my fingers crossed.
Reader Comments (Page 1 of 1)
6-18-2009 @ 3:34PM
MissEmilySmith said...
Abercrombie and Fitch used to be an authentic sporting goods company too, but look at it now.
Eddie Bauer's ladies plain cotton t-shirts were a little over priced selling for $34.99 or more at the beginning of the season, which can be said for many of their basic items. Also, their website isn't easy to use. It's a pain in the you-know-what when using Firefox browser.
Lands End truly went down the tubes when Sears bought it out.
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6-24-2009 @ 4:47PM
Nora said...
Aha! No wonder I've had so many customer service issues with them of late. This 'splains it all -- thanks.
Have to agree with Miss Emily about the tees -- basic tees are basic tees and you can pick them up anywhere pretty cheaply.
Spiegel bought out Eddie Bauer ages ago, don't know what happened to it from there, but, for me, the Spiegel buy out was the beginning of the end.
Sad to say, LL Bean has hopped on the trendy trend with a line of J Crew wannabe stuff that no one in their demographic would ever buy. Cheap quality, overpriced "modern cut" polos and little skirts with "ironic" amphibian designs all over them. Weird.
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