The article first appeared in our sister publication Shop Eat Surf Outdoor
Eddie Bauer LLC, the entity that operates more than 180 of the brand’s retail locations in the U.S. and Canada, has filed for Chapter 11 bankruptcy in the District of New Jersey.
The intellectual property rights to the Eddie Bauer brand are owned by Authentic Brands Group. The filing specifically impacts the retail company, which is part of the Catalyst Brands portfolio.
The company running the storefronts is undergoing a major restructuring in hopes of finding a new path forward.
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Restructuring and Potential Sale
Eddie Bauer’s retail operations entered into a Restructuring Support Agreement (RSA) with its secured lenders and commenced the chapter 11 process, according to a news release.
The company will commence liquidation sales at its locations and wind down some stores while it pursues a “going concern” sale to a buyer who would take over the retail operations. If a buyer is found, the company could avoid a full winddown.
Eddie Bauer’s ecommerce and wholesale operations are not impacted. They are operated by a separate licensed operator, Outdoor 5, and will continue to operate as usual. Eddie Bauer locations outside the U.S. and Canada are operated by different licensees and also are not part of this filing. Authentic Brands Group continues to own the intellectual property associated with the Eddie Bauer brand and may license the brand to other operators.
Catalyst Brands was formed in January 2025 through a merger between JCPenney and SPARC Group. The joint venture manages a portfolio of retail brands including Eddie Bauer, JCPenney, Aéropostale, Brooks Brothers, Lucky Brand and Nautica.
Marc Rosen, CEO of Catalyst Brands, addressed mounting challenges at Eddie Bauer’s retail locations over the last year: “Even prior to the inception of Catalyst Brands last year, the [Eddie Bauer retail company] was in a challenged situation, with declining sales, supply chain challenges and other issues,” said Catalyst CEO Marc Rosen in a statement. “Over the past year, these challenges have been exacerbated by various headwinds, including increased costs of doing business due to inflation, ongoing tariff uncertainty, and other factors. While the leadership team at Catalyst was able to make significant strides in the brand, including rapid improvements in product development and marketing, those changes could not be implemented fast enough to fully address the challenges created over several years.”
Stores Remain Open
Stores in the U.S. and Canada remain open and are continuing to serve customers as the winddown or sale process begins. Online shopping and wholesale distribution will continue as usual under O5, which also has the license for Quiksilver and Billabong, among other brands.
The Chapter 11 process allows the company to access cash collateral to pay employee wages and fund operations in the short term.
“This is not an easy decision, and we are grateful to the retail company’s associates and customers for their loyalty and trust,” Rosen said. “We are working to minimize the impact on the retail company’s employees, vendors, customers and other stakeholders. However, 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.”
Eddie Bauer was founded in 1920 in Seattle, Wash. Its former parent company, Spiegel, filed for bankruptcy in 2003, and Eddie Bauer became a standalone company through that process. In 2009, Eddie Bauer filed for Chapter 11 and was acquired by private equity firm Golden Gate Capital in an auction. Authentic acquired Eddie Bauer in 2021.
