ORLANDO, Fla. – Eddie Bauer filed for Chapter 11 bankruptcy protection – but the iconic outdoor brand itself is not going out of business.
That apparent contradiction exists because, in reality, there are two Eddie Bauers.
The bankruptcy filing involves the company that operates Eddie Bauer’s brick-and-mortar stores in North America, not the Eddie Bauer brand name or its products.
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The store operator is part of Catalyst Brands, a retail group that runs hundreds of mall-based stores across the U.S. and Canada for brands including Brooks Brothers, Lucky Brand, and Nautica.
Catalyst Brands’ Chapter 11 bankruptcy filing could lead to the closure of nearly 200 Eddie Bauer stores. The move is designed to shed expensive leases and restructure debt as mall traffic continues to decline nationwide.
Retail experts say this type of bankruptcy has become increasingly common in the mall-based retail sector, where rising costs and declining foot traffic have made large store footprints difficult to sustain.
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The other Eddie Bauer – the brand behind the name and products – is owned by a completely separate company, Authentic Brands Group. That side of the business includes e-commerce, wholesale partnerships, and international licensing agreements.
Those operations are not part of the expected bankruptcy filing and are expected to continue operating normally.
In practical terms, shoppers may see Eddie Bauer stores closing in malls, but the company’s clothing and gear are expected to remain available online and through other retail partners.
Bottom line: the stores are in trouble – the brand is not.