Eddie Bauer will reportedly close all of its North American stores amid plans to file to Chapter 11 bankruptcy, sources with knowledge of the situation told Women’s Wear Daily (h/t the Toronto Sun).
Eddie Bauer reportedly plans to shutter an estimated 200 stores located across the United States and Canada as part of the bankruptcy plans. Women’s Wear Daily reported last week that the bankruptcy filing wouldn’t, however, impact the company’s manufacturing, e-commerce and wholesale operation in North America as it was in the process of transitioning ownership from Catalyst Brands of Authentic Brands Group to a new licensee, nor stores located in Japan.
Eddie Bauer had previously filed for bankruptcy twice in its 106-year existence, initially in March 2003 when its then-parent company, Spiegel Inc., faced debts and was forced to close several stores. The brand restructured as the stand-alone Eddie Bauer Holdings, Inc., and survived after concluding bankruptcy protection in June 2005.
Eddie Bauer again faced bankruptcy when it was acquired by Golden Gate Capital in 2009, having later been acquired by Authentic Brands Group and SPARC Group LLC in 2011. The retailer’s reported decision follows Saks Global Enterprises, the parent company of the luxury stores Saks Fifth Avenue, Neiman Marcus, recently announcing it will close most locations of its Saks Off 5th and the five remaining Last Call stores amid its recent Chapter 11 bankruptcy in a statement to the Associated Press.
Saks Off 5th and Last Call are both off-price stores of Saks Fifth Avenue and Neiman Marcus, respectively. Saks Global Enterprises plans to shutter 58 of its 70 Saks Off 5th locations, with the remaining outlets serving as a selling channel for residual inventory for Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, the company confirmed in its statement.
Saks Global Enterprises officially filed for Chapter 11 bankruptcy in the Southern District of Texas on January 13. The filing states that the company owes millions to several of the biggest names in luxury fashion including $136 million to Chanel; $59 million to Kering, the parent company of Gucci; and $33 million to Capri Holdings, the parent company of Michael Kors.
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