Eddie Bauer, a well-known outdoor clothing retailer with multiple locations across Canada, has filed for Chapter 11 bankruptcy protection in the United States.
Eddie Bauer LLC, which operates Eddie Bauer stores in both the U.S. and Canada, confirmed Monday that it submitted the filing in New Jersey. The move had been widely anticipated, according to reports.
As part of the restructuring process, liquidation sales are expected to begin soon while the company searches for a buyer for all or part of its retail store operations. Despite the bankruptcy filing, Eddie Bauer says its stores in Canada and the United States will remain open for now and continue serving customers as the company begins winding down certain locations.
The Chapter 11 filing applies specifically to Eddie Bauer’s physical retail and outlet operations, which fall under Catalyst Brands.
In Ontario alone, the retailer operates about 15 stores. Several locations remain in the Greater Toronto Area, including outlets at CF Shops at Don Mills, Vaughan Mills, and Lime Ridge Mall in Hamilton. The company’s CF Toronto Eaton Centre store closed in early 2023, while the Oshawa Centre location shut its doors just last month.
Marc Rosen, CEO of Catalyst Brands, pointed to difficult economic conditions as the driving force behind the bankruptcy. He said Eddie Bauer faced declining sales, supply chain disruptions, and mounting financial pressures throughout the past year.
“These challenges have been exacerbated by increased costs of doing business due to inflation, ongoing tariff uncertainty, and other factors,” Rosen said in a company press release.
Catalyst Brands itself was formed last year through the merger of U.S. department store chain JCPenney and SPARC Group, the retail holding company that acquired Eddie Bauer in May 2021. Rosen noted that while the company made improvements in marketing and product development, those efforts could not be implemented quickly enough to reverse years of ongoing difficulties.
Rosen added that if a buyer cannot be secured, Eddie Bauer may be forced to fully wind down its brick-and-mortar store operations.
“This is not an easy decision,” he said, expressing gratitude to employees and customers for their loyalty over the years. He also stated the company is working to reduce the impact on staff, vendors, and other stakeholders.
The bankruptcy does not affect Eddie Bauer’s e-commerce and wholesale business, which is operated separately by Outdoor 5, LLC, and will continue as usual.
Authentic Brands Group retains ownership of Eddie Bauer’s intellectual property and may license the brand to other operators in the future. Catalyst Brands also emphasized that other brands within its portfolio are not impacted by this filing.
Eddie Bauer stores outside the United States and Canada are operated by separate licensees and are not included in the Chapter 11 process.
Founded more than a century ago, Eddie Bauer began as a small sporting goods shop opened in Seattle in 1920 by outdoorsman Eddie Bauer. Over the decades, it evolved into one of North America’s most recognizable outdoor apparel brands.